China’s economy will expand by more than 8 percent this year as growth rebounds from a six-quarter slowdown, said Li Daokui, a former central bank adviser.
Full-year expansion will be 8.1 percent and fourth-quarter growth may exceed 8.5 percent, Li, who was an academic member of the People’s Bank of China monetary policy committee until March, said in an interview today before speaking to a forum in Beijing.
Li’s comments compare with data this month showing China’s slowdown at risk of extending into a seventh quarter, after export growth slowed in July and industrial production and lending missed economists’ forecasts. Li said China should loosen policies further, including lowering the reserve- requirement ratio for banks.
“A big problem at present is the weak investment from the corporate sector, and China has to do more to encourage corporate investment,” said Li, a professor at Tsinghua University in Beijing.
--Zhou Xin. Editors: Scott Lanman, Patrick Harrington
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