BOC predicts China Q3 growth at 7.3%

The Chinese economy will have grown 7.3 percent year on year in the third quarter of 2014, limited by increasing downward pressure and a high base a year ago, estimated the Bank of China (BOC) in a report on Thursday.

It had previously estimated third-quarter growth at 7.4 percent, but has revised this down ahead of the release of official economic data for the period on Oct. 21.

BOC researcher Li Jianjun attributed the downgrade to a string of unsatisfactory economic indicators in the past two months, which had been expected to show strong impetus.

Official statistics including electricity consumption and freight volume showed signs of a slowdown in July and August. Power consumption expanded only 3 percent in July and contracted 1.5 percent in August on a year-on-year basis.

However, the report still stressed some growth points, such as stable employment and a promising tertiary sector.

It advised fiscal policy adjustment, implementation of measures favorable to small firms and a targeted easing monetary policy, as well as market-oriented regulation of the property market.

Premier Li Keqiang said earlier this month that the Chinese government would not be distracted by minor fluctuations of individual indicators but would stay focused on structural adjustment and other long-term issues.

The BOC predicted 7.4-percent full year growth, as China is still in a de-capacity and de-leveraging period.