China's economic growth may slow further to 7 percent this year, but there will not be a hard landing, Finance Minister Lou Jiwei reportedly said in Washington on Thursday.
The statement reinforces China's increased tolerance towards slower growth and reflects the determination of authorities to pursue more economic reforms that may benefit the economy in the longer-term.
Attending a two-day China-U.S. Strategic and Economic Dialogue, Lou said the slower growth rate is the result of China's economic restructuring. However, the 7 percent forecast should not be considered as the bottom line, Xinhua news agency said citing Lou's remarks at the event.
The estimated growth rate is lower than the government target of 7.5 percent. The economy grew 7.8 percent in 2012 and subsequently in the first quarter of the current year, the growth accelerated to a 7.7 percent clip. Lou forecasts growth to be slightly below this rate for the first half of the year.
The recent financial and debt crises have exposed serious loopholes in China's export-oriented growth model. As its economy started to feel the heat of slowing foreign demand, China turned its focus to boosting private consumption and domestic infrastructure investment for more sustainable growth.
Customs data released earlier this week showed a notable fall in exports, underscoring expectations that growth will continue to slow in the coming months. Exports fell 3.1 percent in June from a year earlier. Imports also declined, down 0.7 percent year-on-year in last month.
Lou, however, assured that despite the moderation in economic growth, the economy will not face a hard landing. The structural reforms are paying off, he said at the meeting.
The National Bureau of Statistics is scheduled to release its second quarter gross domestic product estimate on July 15. Economists currently forecast 7.5 percent growth for the period.
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