World Bank: China needs reform, not growth targets
BEIJING (AP) — The World Bank says China's economic growth could decline to close to 7 percent next year but Beijing should focus on pushing ahead with market-oriented reforms instead of trying to stick to official growth targets.
The bank said Wednesday that China needs to overhaul its labor and real estate markets and its state-dominated financial system to achieve stronger growth long-term.
A bank economist, Karlis Smits, said trying to stick to short-term official targets might set that back by prompting officials to pump credit into the economy and disrupt the growth of markets.
Growth slowed to a five-year low of 7.3 percent in the latest quarter. That reflects official efforts to reduce reliance on trade and investment but has raised concern about possible job losses.