China ready to move into new 'normal growth' phase
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China's annual Central Economic Work Conference concluded on Thursday after a three-day session. It set the tone for a "new normal" growth phase for China in the coming years, as well as economic priorities for 2015.
Reading the text of the government release, it is clear that top officials are keenly aware of the need to shift to a “new normal” growth mode, as the term appears early and repeatedly, and is referred to at least 9 times in the document, said SG-UOB Global Economics and Markets Research.
“As for our assessment of China’s growth outlook, the outcome of the conference is consistent with our view that China is moving into the ‘new normal’ phase, as highlighted in our latest Quarterly Global Outlook 1Q15 published on December 5. We maintain our growth projections for China at 7.2 per cent for 2015, and 7.4 per cent for 2014.
“We remain optimistic of China’s growth prospects ahead, as the Chinese government takes active steps and measures to enhance the country’s growth potential while recognising pitfalls and risks along the way, as well as constraints such as an ageing population and environmental impact, among others,” the research said.
