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Wednesday, April 6, 2016, 14:14

Bank of Canada, ADB have faith in China

By Xinhua

Bank of Canada, ADB have faith in China
Chinese workers assemble parts at an offshore oil drilling platform in Qingdao, east China's Shandong province on April 1, 2016. (STR / AFP)

VANCOUVER/BARCELONA - Bank of Canada and the Asian Development Bank iterated their confidence in the Chinese economy.

Bank of Canada is upbeat about the ongoing economic transition in China, which it said has the potential to grow at a healthy pace in the longer run.

Despite expectations that China's economic growth rate could slow down, the country's growth target is achievable and potential risks are manageable, an Asian Development Bank (ADB) economist said in Barcelona Tuesday.

Bank of Canada is watching China's economic transition closely, the bank's Senior Deputy Governor Carolyn Wilkins said on Tuesday.

China has grown remarkably since undertaking market reforms in the 1980s and joining the World Trade Organization in 2001, the bank noted in a press release.

Wilkins said China's slower economic expansion rate is bringing it to a more "sustainable pace" of development, which "is not only inevitable, but also desirable."

"The Bank of Canada will continue to watch developments in China closely, given its importance to Canada," she said.

Juzhong Zhuang, deputy chief economist and deputy director general, Economic Research and Regional Cooperation Department at the Asian Development Bank (ADB), made the remarks at an event to present the Asian Development Outlook 2016 report.

He said that "potential risks have increased in China," but added that "China's target growth is achievable and risks are manageable," stressing the fact that "the government is aware" of it and "they are taking action."

According to Zhuang, the slowing down of China's economic growth is due to a weak external demand, structural factors affecting demographics, China's exports competitiveness and the government policy of shifting the model from growth led by exports and investment to growth led by consumption and the services sector.

Economic growth in developing Asia will soften slightly to 5.7 percent in 2016 and 2017 from the 5.9 percent in 2015, according to the ADB report. It emphasized that structural reforms are needed in order to boost Asia's potential growth as it has slowed.

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