China Is Confident the Economy Grew Over 6% in 2016

January 8, 2017, 2:24 PM UTC
Images of the Shenzhen Stock Exchange and General Economy
Cranes operate at a construction site as residential buildings stand in the background in Shenzhen, China, on Tuesday, Aug. 23, 2016. Derivative markets are pointing to renewed bets on yuan depreciation, with a three-month measure of expected price swings poised for the biggest monthly increase since January. Photographer: Qilai Shen/Bloomberg via Getty Images
Qilai Shen/Bloomberg via Getty Images

China is confident to have reached an economic growth of 6.7% in 2016, within a targeted range set earlier in the year, Vice Finance Minister Zhu Guangyao said on Sunday.

China’s economy expanded at a steady 6.7% in the first three quarters last year, and Zhu said he was confident the growth rate would have reached the same level or more in the fourth quarter of 2016. Zhu’s remarks were made at a forum held by Tsinghua University in Beijing.

China, which had been aiming for a 6.5-7 % economic growth for 2016, boosted government spending, saw a housing rally and record high levels of bank lending last year, which, however, also led to an explosive increase in debt.

Many analysts believe growth was lower than official data suggests, but acknowledge that the construction boom significantly underpinned the economy.

A government-run think tank said earlier this month that China’s economic growth could slow to 6.5% in 2017 from about 6.7% in 2016.

Zhu also said the global economy would face some uncertainty this year amid worries about U.S. policy changes after President-elect Donald Trump takes office on Jan. 20.

During his campaign, Trump threatened to declare Beijing a currency manipulator and levy a 45% punitive tax on all Chinese goods to reduce a massive U.S. trade deficit with China.