China´s GDP growth for the fourth quarter of 2015 has been set at 6.8%, lowest since 2009, but very much in line with the expectations, says business analyst Ben Cavender in Money Control. For 2016 he expects the figure to hoover in the mid-6 percent.
Cavender: Everybody has been a bit conservative this year and they should expect somewhere in mid-6 percent range. Realistically we shouldn’t expect that we have seen anything faster than that. The government recognises that there has to be a correction towards slightly slower growth model here and that’s really as it should be, so should be expected around 6 percent.
Ekta: 6 percent?
Cavender: 6.4-6.5 percent. Ekta: 6.4-6.5 percent is your expectation for 2016?
Cavender: Yes that’s correct.
Nigel: Over the last couple of days we have seen some stability come about in the Chinese currency at around 6.55 odd marks. What is your reading of that? Is that likely to percolate to the market on the whole?
Cavender: We are going to see currency devaluation going forward and we are probably going to see the government trying to keep a bit more stability going forward. They are going to try and kicks some jitters out of the market here. If the currency is more stable then that should help the market in China. Obviously at the beginning of the year has been extremely rough for a lot of markets but if things stabilise here in China, it should make it easier for other countries in terms of currencies.
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