Coface 2014 Outlook for China
Real GDP growth in China in 2014 will remain stable but slow slightly to 7.2%, according to global credit insurer Coface’s latest economic Panorama. The government’s lower GDP growth target for the year reflects an intention to accelerate reform efforts. Exports and investment are expected to improve in light of the global recovery.
Acceleration of urbanization and better local government debt management were two key themes highlighted during the recent Central Economic Work Conference, which sets the economic policy for the year. It is expected that the government will continue to encourage private sector infrastructure investment – particularly in building "networks of cities" in the Midwest and Northeast regions. Since the government has already indicated that fiscal policy will remain stable, the private sector is expected to fund these projects.