China’s economy in 2016 is expected to grow by 6.5-7 per cent. As reported Reuters, said on Saturday, March 5, at the annual session of vsekitajsky meeting of national representatives, the Prime Minister of China Li Keqiang.
GDP growth in the XIII five year plan (2016-2020) should be below 6.5 percent. The consumer price index (a key indicator of inflation in China), predicted Li Keqiang, this year will grow by 3 per cent, which is more than two times higher than in 2015. the budget Deficit will increase from 2.4 percent last year to 3 percent or to 2.18 trillion yuan (334 billion) in 2016.
Military spending Beijing in 2016 will grow by 7.6 per cent, to 954 billion yuan (146 billion dollars). This was the lowest increase in the defence budget of China in the last six years.
By the end of 2015, China’s GDP grew by 6.9 per cent — the worst figure for the last quarter century. In the Academy of Sciences of China believe that in 2016 the economy will grow by 6.7 percent.
According to the PRC state statistics service, in 2015 the total profit of leading industrial companies in China fell by 6.4 trillion yuan, or 973 billion. This decline is due to low demand for industrial products, as a result, companies have cut production and lowered prices. A noticeable decline was recorded coal-mining, oil & gas and metallurgical sector. Capital outflows from China amounted last year to a trillion dollars. Investors move money out of the country after the devaluation of the yuan and the fall of stock indices of China.
On 1 March the international rating Agency Moody’s downgraded the credit rating of the PRC from stable to negative, pointing to increased risks associated with the increasing level of government debt and the timely implementation of reforms.