China GDP forecast to hit 24-year low of 7.4pc
With growth expected at 7.4 per cent, Beijing is urged to step up structural reform and set a lower target for economic expansion next year
With the mainland's economic growth likely to sink this year to its slowest pace in 24 years, economists expect Beijing to cut next year's growth target to 7 per cent.
Economists surveyed by the South China Morning Post urged Beijing to accelerate the overhaul of imbalanced resources allocation to reverse a fall in productivity and promote a more sustainable growth model.
However, most said fears of a sharp economic correction would see the central government maintain an easing policy.
Their forecasts centred on gross domestic product growth of 7.3 per cent in the fourth quarter, unchanged from the third, as policies rolled out to boost infrastructure, social-housing construction and home purchases would offset the drag from a property investment downturn and excess capacity in a wide array of industries including steel and cement.
The economists said expansion for all of this year was likely to cool to 7.4 per cent, the slowest pace since 1990 and below the government's target of about 7.5 per cent.
This, of course, would be no surprise to the market, as Premier Li Keqiang has repeatedly indicated his willingness to tolerate slower growth as long as the labour market is not disrupted.