Top Chinese think tank sees mild slowdown ahead as financial risks surface
Global trade frictions expected to amplify financial volatility, State Information Centre says
China’s broad economic growth was expected to ease to around 6.6 per cent in the second half of this year, the State Information Centre said on Saturday.
The official China Securities Journal quoted the State Information Centre (SIC) as saying the Chinese economy was likely to experience a mild slowdown in the second half of the year as financial market risks become “obvious” and demand was expected to decline.
The SIC is an official think tank affiliated with the National Development and Reform Commission, the country’s top economic planning agency.
The economy has already felt the pinch from a crackdown on riskier lending that has driven up corporate borrowing costs.
The central bank has since pumped more cash into the economy to ease fears from the start of a trade war with the United States by cutting reserve requirements for banks.
“Uncertainties in both internal and external economic developments are rising. Global trade frictions are intensifying while a spillover effect from major economies’ monetary policy normalisation will amplify financial market volatility,” the think tank said.