China will miss its growth targets ... but that’s OK, says boss of global consultancy
Oxford Economics chairman says China’s economy will still grow steadily for the next five years
China’s government and global markets shouldn’t worry about the nation missing annual growth targets of about 6.5 per cent over the next five years as the economy will still show steady expansion, according to the head of a global consultancy.
Growth is likely to hit about three to four per cent each year, still a strong showing, said John Walker, the chairman of Britain-based Oxford Economics.
“When you become a more developed economy, the growth rate comes down. So I don’t think they should get so hung up about 6.5 per cent,” he said.
“If growth slows to three to four per cent a year, that would be politically difficult for the government, but I don’t think it would be economically difficult for the government. That’s what economies do,” Walker said.
The target has come under increasing scrutiny as it may require the government to continue focusing on short-term growth and investment at the cost of much-needed economic structural reforms. China’s GDP grew 6.7 per cent in the first half of the year as the world’s second-largest economy continues to slow.