ADB raised in December the 2013 growth projection for the People’s Republic of China (PRC) by 0.1 percentage points to 7.7%, as infrastructure investment boosted third quarter growth above the rate assumed in the Asian Development Outlook 2013 Update in October.
|Selected Economic Indicators (%) - People's Republic of China||2012||2013||2014|
Source: Asian Development Bank. 2013. Asian Development Outlook 2013 Update. Manila; ADB estimates.
The structural reforms proposed by the Third Plenary Session of the 18th Central Committee of the Communist Party of China in November 2013 will likely have a positive impact on private consumption and private investment starting in 2014. However, the upside potential for growth is limited by the reining in of credit growth in line with recent central bank statements about deleveraging and somewhat decelerated public investment intended to curtail local government borrowing.
PRC growth in 2014 is likely to be somewhat stronger than previously forecast and hit 7.5%, supported by structural reforms and better economic conditions in the industrialized economies.