World Bank sees China growth moderating on deleveraging risks - BBG

In its latest quarterly report released on Tuesday, the World Bank sees the Chinese economic growth easing slightly in the next two years as policies to reduce leverage gradually take hold, Bloomberg reports.

Key Points:

Growth in the world’s second-largest economy will slow to 6.4 percent in 2018 and 6.3 percent in 2019 from 6.8 percent this year.

"Prudent monetary policy, stricter financial sector regulation, and the government’s continuing efforts to restructure the economy and to rein in the pace of leveraging are expected to contribute to the growth moderation."

"Favorable economic conditions make this a particularly opportune time to further reduce macroeconomic vulnerabilities."

The still rising leverage of the non-financial sector and uncertainty related to property prices may damp the economic expansion outlook further.