BEIJING (dpa-AFX) - China is likely to log economic growth of 6.1 percent this year and 6 percent in 2020, Elliot Clarke, an economist at Westpac Institutional Bank said Monday.
Official data released earlier in the day showed that the economy grew at the slowest pace in 27 years in the second quarter. Gross domestic product expanded 6.2 percent in the second quarter and by 6.3 percent in the first half of the year.
GDP data puts the economy on track to achieve full-year growth at the bottom end of authorities' 6-6.5 percent target range, the economist noted.
As contribution of net exports to growth is set to diminish further on higher US tariffs, growth in consumption and investment became important, Clarke observed.
However, the economist said households have become more cautious in their spending over the past year, while the variability of outcomes across industry remains a major concern for the investment outlook.
Although investment growth is expected to firm through the second half thanks to improved credit availability and lower interest costs, headwinds will persist, said Clarke.
'They also emphasize that risks to the activity view are set to remain skewed to the downside for the foreseeable future,' he added.
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