‘Modest rebound for China’s economy’

16  January 2013

China’s economy will experience a modest rebound in the fourth quarter, said Ba Shusong, vice-president of the Development Research Center for the State Council and chief economist of the China Banking Association.

Although China’s economy is growing slowly, it continues to grow, which should be noted, he said.

“In the following seasons, the macro economy will grow better but, from the micro perspective, companies’ profits will continue to decline on a smaller scale than previous months,” he said.

He added that over-production capacity in some industries, such as the steel industry, will make policy makers more cautious about carrying out new large-scale measures to boost economy.

According to the China Iron and Steel Association, China’s steel industry is facing severe over-capacity that has led to massive losses.