The country’s economy is projected to expand by 5.3% next year, according to a macroeconomic research agency
The Chinese economy is expected to grow by 5.3% this year as the property sector recovers and external demand improves, the ASEAN+3 Macroeconomic Research Office (AMRO) said on Monday.
In its latest report, the Singapore-based group noted that stabilization in China’s property sector along with ongoing policy support will boost real estate investment and drive growth in the ASEAN+3 region, which consists of Southeast Asian nations plus Japan, China, and South Korea.
AMRO’s projection is higher than China’s official growth target of about 5% and Bloomberg’s forecast, which expects the country’s economy to grow 4.6% this year.
“China will continue to be a powerhouse in the region and the main driver of growth,” AMRO chief economist Hoe Ee Khor told Bloomberg. Weakness in the real estate sector “will take a bit of time to overcome, but it will happen and we expect the drag on growth will bottom out maybe this year.”
The Chinese property sector crisis was sparked by the financial distress of major real estate developers, including property giants China Evergrande Group and Country Garden, which have defaulted on their debt.
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