Economists raise China GDP forecast after growth beats estimates

(July 25): Economists raised their forecasts for China’s economic output after growth in the first half beat estimates. That robust activity is giving policy makers’ room to curb excessive and speculative borrowing.

China’s gross domestic product will expand by 6.7% from a year ago in the third quarter and 6.6% in the fourth quarter, according to the median of 57 economist estimates in a July 17-24 Bloomberg survey. Both forecasts were 0.1 percentage point higher than a month ago.

The expansion in the second quarter beat market expectations and with growth this year on track to meet the government’s target, policy makers will have more leeway to act to contain risks and achieve stability, a priority that was identified at a top-level financial work conference earlier this month.

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