Chinese economic growth likely to remain robust, GDP to double from level of 2010 by 2020 – Nordea Bank

The Chinese economic growth is expected to stay robust, according to a Nordea Bank research report. Also, the nation is expected to realise its long-term target to double its GDP from the level of 2010 by 2020. According to the forecast, policy stance is unlikely to be tightened markedly from the current one.

Nordea’s new China forecast expects GDP growth to remain robust and China to achieve its long-term target to double its GDP from the level of 2010 by 2020. The forecast presumes that policy stance is not tightened noticeably from the current one.

The Chinese economy is expected to expand 6.7 percent this year, 6.3 percent next year and 6.1 percent in 2019, stated Nordea Bank. Therefore, China might attain its long-term target to double its GDP from the level of 2010 by 2020 if policy stance is not tightened markedly. The short-term growth prospects have stayed strong.

Consumption continues be the vital growth driver as the gradual structural shift from investment to consumption-based growth continues. Given China’s still moderate income level, there is room for the economy to expand and converge with the high-income nations for several years to come. The biggest downside risk is from the vast debt stock that might push the leaders to begin tightening credit growth aggressively, said Nordea Bank.

The Chinese yuan has strengthened against both dollar and the CFETS basket in recent weeks. This move is expected to ease in the weeks ahead.

At 15:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was bullish at 81.0086, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -57.101. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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