Singapore expert say slower growth "brings its own benefits" as Chinese economy matures

Singapore expert said at a forum that the slowdown of China's economic growth is the "new normal," which is inevitable and brings its own benefits as its economy matures, local media the Strait Times reported on Thursday.

"It's a slowdown, but only by Chinese standards. China can't be expected to grow 6 to 7 percent forever; no economy can keep growing at such high rates," Professor John Wong of the East Asian Institute at the National University of Singapore said at the Straits Times Global Outlook series on Wednesday.

China's economy grew 6.9 percent year on year in 2015, the country's most sluggish expansion since 1990, which triggered concerns over whether the world's second largest economy will face a hard landing.

However, Wong said that the new normal in fact gives China a chance to promote reforms and restructure of the economy.

"China's economy is really being restructured; growth used to be externally driven and labour intensive, now it's domestically driven and capital intensive," he said.

China's service sector contributed 50.5 percent to the country's GDP in 2015, up from 48.1 percent in 2014. It is the first time the sector has exceeded 50 percent. Endit