The global GDP growth will decline next year while China's GDP is predicted to have 6.7 per cent growth, forecasted Stephen Roach, chief economist of US-based leading investment bank Morgan Stanley.

Roach made the remark when giving a lecture at the Center of China Economic Studies in Peking University on Friday, according to the International Finance News on November 21.

Roach pointed out that in a comparatively long period, the two driving powers for China's economic growth are the investment in the fixed assets and exports. If only depending on the investment in the fixed assets, and even there comes skyrocket increase, it is unsustainable for the economic development in the country. In the meanwhile, it is unavoidable for the United States to reduce expenditures. All this will have great impact on China's exports.

Roach noted that China is not facing a crisis now, however, the slowdown of US consumers' expenditure is only one of the challenges that China will face. So China's economic growth requires to be based on different driving forces. Even if there is China's economic slowdown, then, that will be periodic instead of perpetual.

Roach also offers a five-point proposal for China's economic development: the expansion of personal consumption, the increase of job opportunities, the enhancement of social security, the transformation of pricing mechanism, and dealing with international relations well, especially the bilateral ties between China and the United States.

By People's Daily Online