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Pessimists forecasted a bad economy for China at the start of the year. However, things are still looking pretty good – but until when remains to be seen. A CNNMoney survey from economists showed that China was expected to at least have increased by 6.7% for the three months ending in September compared to same time last year. Chinese government available data says that for these past two quarters, economy has indeed coincided to what they have predicted. The forecast for the whole of 2016 will be a growth of 6.6%, slightly lower than the 6.9% progress last year.
From the given figures, things are still looking positive but news on the other hand show that fear is building up in the business industry. Why? Wang Jianlin, one of the country’s billionaire real estate tycoons, says that China’s economy is encapsulated in a so-called biggest bubble in its entire history and no one knows if this could burst soon. Economist Julian Evans-Pritchard on the other hand says that businesses are worried that while the financial stability could remain, he predicts that the economic growth would become sluggish in the future.
Experts are expecting that growth would start to taper down by 2017 where they say that this will go down to 6.3%. Private companies are now hesitant to engage in expansion. Economists from HSBC on the other hand claim that the greatest threat that the country faces is none other than the entrepreneurs choosing to remain pessimist during these trying times.
Meanwhile, International Monetary Fund and other agencies have been trying to send the message that the country has been engaging too much in borrowing money for its public investments. The said agencies think that it would be better if the government took initiatives to form generalized reforms or risk losing the potential to attract more investors which could contribute to their economic growth.