Opinion / Fu Jing

OECD expects economy to expand at 6.7%

By Fu Jing ( Updated: 2016-11-29 17:34

China's economy will grow at 6.7 percent this year, but edge down to 6.4 and 6.1 in 2017 and 2018, the Paris-based Organization for Economic Co-operation and Development said in its global economic outlook on Monday.

The three-year predictions are roughly in line the Chinese government's goal of achieving average annual growth of 6.5 percent during the 2016-20 period to realize its target of doubling per capita income by 2020 from a 2010 base, although the OECD said China needs to arrest the downward trend in 2019 and 2020.

Chinese policy insiders said the OECD predictions were reasonable and that China "enjoys more advantages than disadvantages" in keeping its annual economic growth between 6 and 7 percent between 2016 and 2020.

The unpredictability of the exit process from the European Union is a major downside risk for the economy of the UK, which the OECD predicted will grow at 2 percent in 2016. It will slow to 1.2 percent and 1.0 percent in 2017 and 2018.

The OECD expects the US economy to pick up, due to an assumed easing of fiscal policy, with it projected to grow by 2.3 percent in 2017 and 3 percent in 2018. The euro area is expected to grow at a 1.6 percent in 2017 and by 1.7 percent in 2018.

The report says the 35-country OECD area's economy is projected to grow by 2 percent in 2017 and 2.3 percent in 2018.

"The global economy has the prospect of modestly higher growth, after five years of disappointingly weak outcomes," said OECD Secretary-General Angel Gurria at the launch of the report in Paris.

Chi Fulin, president of the China Institute for Reform and Development, said the messages in the report are positive and China's continuing economic restructuring will benefit from the upside projections

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