Economist of the Hongkong and Shanghai Banking Corporation Limited John Zhu said here on Friday that Chinese mainland's economic growth is expected to reach 7 percent in the coming one or two years.
Speaking of the Chinese GDP target at a press conference, Zhu said that there is a difference between the cycle and the potential of Chinese economy. "To argue is that China's economy can still potentially grow at something around 7 percent." Zhu added that the market is expecting the U.S. to increase interest rate and that mainland is lowering interest rate, which in turn, will lead to further depreciation of RMB.
He expected the exchange rate of U.S. dollar/RMB yuan down to 6.5 at the end of this year. As for Hong Kong, Zhu forecast a GDP growth of 2.3 percent this year and 2.2 percent next year. "A lot of it is due to the very weak global trade recovery," he said, adding Hong Kong is an open economy with import and export services accounted for about 20 percent of its GDP.
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