China Sees Growth Slowing To 7.6% This Year: Xinhua

(RTTNews) - China's economic growth is likely to be 7.6 percent this year, slower than last year's 7.7 percent growth, but better than the government target of 7.5 percent, the state-run Xinhua news agency reported on Wednesday, citing a Cabinet report.

Xu Shaoshi, the head of the top economic planning authority - the National Development and Reform Commission, said, "We cannot deny a downward pressure on economic growth."

Global economic recovery faces uncertainties and the international market has failed to produce strong demand, he reportedly said.

China's traditional growth model faces challenges which include rising labor and environmental costs, Xu said.

Further, the Chinese economy faces challenges from rising risks in local government debt, the financial sector, overcapacity in the industry and excess funding in infrastructure projects, he added.

The Cabinet report said China will further raise the flexibility of interest rates and coordinate fiscal monetary, industrial, land use and environmental policies, to prevent huge economic fluctuations, Xinhua reported.

Further, the government will carefully handle local debt while ensuring reasonable needs for liquidity, it added.