China’s central bank cuts 2015 GDP growth forecast to seven percent

Thursday, 11 June 2015 17:27:19 (GMT+3)   |   Shanghai

China's central bank has adjusted its forecasts for the country's main economic data in 2015, as compared to its previous forecasts issued in December 2014. Accordingly, the central bank has lowered its forecast for China's gross domestic product (GDP) growth in 2015 from 7.1 percent to 7.0 percent, it has reduced its domestic fixed asset investment growth estimation from 12.8 percent to 12.6 percent, while it now expects Chinese export growth of 2.5 percent in 2015, down from the previous prediction of 6.9 percent growth, while it has cut its import growth expectation from 5.1 percent to minus 4.2 percent.

According to the central bank, the adjustment of its forecasts is mainly due to three principal factors. First of all, China's export growth has seen significant declines since the beginning of this year. Secondly, the reduction in real estate investment has been faster than expected as some real estate developers have faced financing difficulties due to sluggish sales and high inventory levels. Thirdly, some industries, mostly industries facing oversupply problems such as the coal, steel, export-oriented manufacturing and real estate industries, have experienced difficulties in obtaining loans.

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