Economics
China’s Central Bank Estimates Potential Growth of Under 6%
- Monetary policy should seek to match actual and potential GDP
- PBOC drops ‘no sharp turn’ in quarterly policy guidance
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China’s central bank estimated the maximum the economy can expand without fueling inflation, known as the potential growth rate, is under 6% in the next five years.
In a working paper released Thursday, the statistics department of the People’s Bank of China said potential growth was projected at 5%-5.7% in the period covering the government’s latest five-year plan through 2025. That represents an overall “medium to high” growth rate, it said.