The government of China admits that the next year economic growth may lose its steam. The authorities say that deceleration is imminent and announce country’s readiness in case dull forecasts become intact. A series of structural and social reforms are on the mark to buffer negative effects and support the poor and unprotected segments of society. Although an official plan for economic development is not disclosed yet, experts believe that GDP is about to ebb to 7%. For context, the government expects 7.5% growth for 2014.
China has been showing stellar economic performance over decades and was rightfully considered to be the second largest economy. However, the time is right for the new course now.
Stability on the domestic market due to lower investments in foreign trade is a new goal for China. The government aims at providing sufficient number of vacancies in order to escape public unrest. Local economists believe that despite significant drop in global GDP growth, China may reach its new goals. Xi Jinping revealed the plans to facilitate access to the main government services: education for children and poor families. All this is favorable for structural revamp which is under the way in China.
