The World Bank raised its 2017 growth forecast for China's economy on the back of policy reforms, while it expects growth to ease in 2018 and 2019 as a result of deleveraging, media reports said.
The bank expects China's GDP to grow 6.8% in 2017, up from 6.7% in its October forecast, amid rising household incomes and a recovery in global trade, the Financial Times reported, citing the bank's China Economic Update report.
The bank forecasts the country's 2018 and 2019 GDP growth to moderate to 6.4% and 6.3%, respectively, as continued domestic policy tightening begin to take root, Bloomberg News said, citing the same report.
"China has maintained its growth resilience and gained reform momentum," said John Litwack, World Bank lead economist for China. Various regulatory measures aimed at reducing macroeconomic imbalances and financial risks have not constrained growth. "As a result, 2017 has been a successful year for China on many fronts," he said.
"Prudent monetary policy, stricter financial sector regulation, and the government's continuing efforts to restructure the economy and to rein in the pace of leveraging are expected to contribute to the growth moderation," Bloomberg cited the bank as saying.
Rising debt in the nonfinancial sector and volatile property prices may dampen China's economic growth outlook, said the bank.