China holds key economic meet amid concerns over slowdown

BEIJING: China's top planners today held a key meeting amid growing concerns over slowdown in the world's second largest economy as officials warn it may miss the 7.5 per cent growth rate target this year and continue to plummet next year creating new pressures.

External uncertainties will increase next year, which may further drag down Chinese exports and imports and add pressure to the economy, a senior researcher at the government's top think tank warned.

Economic growth is likely to slow to about seven per cent far from the heydays of the double digit growth for decades which propelled China to become second largest economy, Wei Jianguo, vice chairman and secretary-general of the China Centre for International Economic Exchanges, said.

The world's major economies may witness a downturn and global demand will remain weak in 2015, Wei told state-run China Daily.

He said China is unlikely to achieve this year's economic growth target of 7.5 per cent and the global foreign trade situation will worsen in 2015.

The gloomy external environment will push China to focus more on stimulating domestic demand, which is a key composition of ongoing structural reform, Wei said.

Analysts say there are also some strong headwinds for the Chinese economy in 2015, including deceleration of investment growth, financing constraints, and difficulties in the real economy.

The risk of downward pressure for the economy cannot be ignored, state-run Xinhua news agency reported.

Last week, a meeting of the Political Bureau of the Communist Party of China Central Committee said in a statement that China would focus on boosting economic growth quality and efficiency in 2015 and stick to the theme of seeking progress while maintaining stability.

China will actively adapt to the economic "new normal," keep economic growth within a reasonable range and emphasise economic restructuring, the statement said.

In the first three quarters, Chinese economy expanded 7.4 percent year-on-year.

It is widely believed that China will stick to an overall strategy of stable and consistent macroeconomic policies, flexible micro policies and supportive social policies in 2015, the Xinhua report said.