BOFIT Viikkokatsaus / BOFIT Weekly Review 2017/06
China's gross domestic product rose 6.7 % in real terms last year. The latest IMF and World Bank forecasts now expect Chinese GDP to rise 6.5 % this year. The OECD foresees 6.4 % growth. All three forecasters see growth in 2018 slowing to around 6 % p.a. Moreover, most of the other major forecasters expect China's economic growth this year and next to be somewhere in the range of 6.0–6.5 %.
The IMF last month raised its growth forecast for China this year, because it expects China's current stimulus policy to support growth more than originally thought. The World Bank also noted stimulus-led growth in its January forecast, as well as the OECD in its forecast last autumn. International institutions are concerned about debt-fuelled stimulus policies that add to China's debt and help keep old, inefficient structures in place.