ADB keeps China growth forecast unchanged at 6.7% for 2017

A technician inspects the surface of a stainless steel component at a factory of Shanxi-based Taiyuan Iron and Steel (Group) Co, which is staking its future on research and development efforts. [Photo provided to China Daily]

BEIJING — The Asian Development Bank (ADB) on Tuesday projected China's growth at 6.7 percent this year and 6.4 percent for 2018, unchanged from its July estimates.

In an update of the Asian Development Outlook (ADO) 2017, its flagship annual economic publication, ADB said better-than-expected external demand, proactive fiscal policy and strong domestic consumption have combined to drive up China's growth.

"The Chinese economy remains resilient, solidifying its role as an engine of global growth," said Yasuyuki Sawada, ADB Chief Economist, in a statement released after the update.

Noting China's supply-side reform is moving forward, Sawada said eventual success hinges on a careful balancing of the role of the market and the state, particularly as the country continues its transition to a more market and services-driven economy.

China's economy expanded 6.9 percent for the first half of 2017, with consumption and services, together with new innovation-driven economic sectors, taking up larger roles in the economy.

For the rest of 2017, the ADB forecasts that consumption will remain the main growth driver of the economy as incomes rise and consumer confidence strengthens.

Net exports, which has contributed to China's growth so far, will not play the role in 2018 when imports are again expected to exceed exports. Investment, meanwhile, will continue its downward trend due to structural and cyclical factors, including an uncertain business outlook for export-oriented industries and remaining industrial excess capacity, according to the update.