World Bank raised its forecast for China's economic growth in 2017 to 6.8%

  • In October it forecast 6.7%
  • Cites personal consumption and foreign trade supporting growth

For China in 2018 and 2019

  • GDP growth forecast is unchanged at 6.4% & 6.3% respectively
  • Citing less accommodative monetary policy , government efforts to slow credit, control leverage

The bank on downside risks to their GDP expectations:

  • Still rising leverage of the non-financial sector ... credit continues to grow considerably faster than GDP. Outstanding bank loans reached 150 percent of GDP in November 2017, up from 103 percent at the end of 2007
  • Uncertainty on housing prices
  • External risks - potential for more restrictive trade policies in advanced economies, geopolitical tensions