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China's economy to grow 2.5% this year: Bloomberg report

Xinhua | Updated: 2020-07-27 14:27
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Containers are unloaded from a ship at a port of Qingdao, East China's Shandong province, on Feb 17, 2020. [Photo/Xinhua]

BEIJING -- China's economy will grow 2.5 percent this year, Bloomberg News has reported, citing the UBS Group AG that raised its forecast from 1.5 percent due to the recovery in domestic consumption and strong investment.

Chinese economy will expand 5.5 percent this quarter from a year earlier, and 6 percent in the final three months of 2020, Bloomberg quoted the bank's chief China economist Wang Tao and others as saying.

The surprising strength of Chinese exports in the second quarter prompted the economists to increase their estimate for trade in the rest of the year, and they also revised up the inflation forecast to 2.5 percent for 2020 from 2.4 percent earlier, the report said.

The property sector is expected to show more resilience, thanks to the economic recovery and effects of easier credit, said the report, noting that Oxford Economics also upgraded its full-year GDP forecast to 2.5 percent from 2 percent on a strong rebound in the second quarter.

Citing a survey of 67 economists, Bloomberg said in another recent report that, China's growth in the current quarter will be 5.2 percent from a year ago, faster than the 3.2-percent expansion in the three months to June.

The Chinese economy returned to growth in the second quarter, marking an important milestone in the global struggle to recover from the virus shutdowns, the report said.

Solid inbuilt momentum in the domestic economy, coupled with external tailwinds from recovering global demand, are setting the stage for a further growth acceleration in the second half of the year, Aidan Yao, senior economist at AXA Investment Managers in the survey, was quoted as saying.

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