ADB revises China GDP growth target

China’s GDP growth may moderate to 6.2 percent year-on-year this year due to slowing exports and dampened investor confidence as trade tensions escalate, said a report published by the Asian Development Bank on Sept 25.

Though the forecast was down from the 6.3 percent predicted by it in April, the country’s accommodative fiscal and monetary policies will help cope with the headwinds, the multilateral lending institution said.

“The Chinese economy will see growth stabilize for the remainder of this year and moderate slightly next year, supported by a gradual loosening of the monetary policy, increased government spending and solid growth in the housing market,” ADB chief economist Yasuyuki Sawada said in a statement.

“Domestic consumption will be the main driver of growth going forward with the main downside risk stemming from a potential intensification of the trade conflict with the United States,” he said.

The ADB expects China’s growth to be 6 percent in 2020.