Slower economic growth forecasted due to excess capacity, housing glut and debt bubble
With a boost from the industrial sector, China's real GDP rose 6.9% year on year in the first quarter of 2017, up from 6.7% in the fourth quarter of 2016. IHS Markit forecasts that, despite this jump, major cyclical forces stemming from excess capacity, a housing glut and a debt bubble will moderate growth in 2017 to 6.5%. Industrial production growth will also continue to decelerate. It remained below overall economic growth because of cyclical headwinds from excess capacity and the secular trend of the economy's structural transition toward the service sector.
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