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Wednesday, September 30, 2015, 12:45

WEF rules out hard landing for China

By Xinhua

GENEVA - A hard landing of the Chinese economy seems unlikely, although recent developments have cast some doubt on China's economic prospects, according to the Global Competitiveness Report 2015-2016 released by the World Economic Forum (WEF) on Wednesday.

The report points out that China has achieved near universal primary education and high levels of public health, invested massively in transport and energy infrastructure, and ensured a relatively stable macroeconomic environment.

These successes have not only contributed to China's emergence as a manufacturing hub, but also represented assets for its further growth.

Meanwhile, WEF analysts said that an eventual slowdown of the Chinese economy was inevitable, predictable, and entirely normal, given China's impressive growth trajectory over the past two decades.

"There are signs that the government has been preparing for the economy's new phase and has been recalibrating its growth objectives from the quantitative to the qualitative," the report reads.

The report said challenges and downside risks in China are many even though the economy is unlikely to experience a hard landing.

It added that the most problematic factor for doing business in China is its lack of capacity to innovate, which has become a growing concern in recent years.

On Switzerland, the report shows that the European country remains the most competitive economy worldwide for the seventh consecutive year, with its strong performance in all 12 pillars of the Global Competitiveness Index (GCI), which explains its remarkable resilience throughout the crisis and subsequent shocks.

In this year's ranking, Singapore remains in the second place and the United States in the third. Germany improves by one place to the fourth, while the Netherlands returns to the fifth place it held three years ago.

Among emerging and developing Asian economies, the competitiveness trends are mostly positive, despite many challenges and profound intra-regional disparities.

The report is an annual assessment of the factors driving productivity and prosperity in 140 countries. This year's edition found a correlation between highly competitive countries and those that have either withstood the global economic crisis or made a swift recovery from it.

The GCI was introduced by the World Economic Forum in 2004.

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