WB agrees with China growth targets

BEIJING, June 7 (Gulf News): China is likely to meet its economic growth target of 7.5 per cent this year, the World Bank said, but must persevere with fiscal and financial sector reforms to deal with the root cause of its debt problems.
"The prospect of growth falling below the government target will likely trigger accommodative fiscal and monetary policies," the Washington-based development bank said in its latest assessment of China's economy.
"These measures should help the authorities to reach the indicative growth target of around 7.5 per cent in 2014, but will likely add to current imbalances and vulnerabilities."
The government unveiled a series of targeted measures after the economy got off to a weak start this year, with official May manufacturing and service sector surveys already showing an improvement.
The World Bank expected China's economy to grow 7.6 per cent this year on policy support and a recovery of global demand, while it noted growth could slow to 7.5 per cent in 2015.
The International Monetary Fund said on Thursday it expected China to grow by around 7.5 per cent this year and then slow to around 7 per cent next year.
The World Bank said China's growth momentum could accelerate in the second quarter of 2014, a more upbeat view than many private economists. A Reuters poll, however, found analysts expect annual GDP growth to slow to 7.3 per cent in the second quarter, with full-year growth of 7.3 per cent in 2014, the weakest in 24 years and below the government target of 7.5 per cent.