Its strong fiscal position, receding inflation and expansionary policy measures should ensure a softeconomiclanding, but it needs to expedite its effort to diversify the source of growth and strengthen structural reforms for inclusive growth.
But anyone who thought that there was going to be a slowdown in infrastructure build-out this year, as the government tries to engineer a softlanding to its spectacular economic growth, need only stare at the Shanghai skyline for a few days, if not just a few minutes.
There are risks in that the rapid rises in residential real estate prices could reverse and become destabilizing to parts of the economy, but overall, we forecast a soft rather than a hard landing for the economy and forecast 2102 economic growth of about 8%.