Chinese CB governor: We have to accept China’s economic ‎growth slowdown in short term

Chinese Central Bank Governor Pan Junsheng stressed the need to accept a slowdown in the pace of China’s economic growth in the short term, at a time when growth is shifting from relying on real estate investment and infrastructure projects to other growth engines.

“He is confident that the world’s second-largest economy will achieve good and sustainable growth in the coming year and beyond,” Junsheng said in his speech to a bankers’ conference in Hong Kong, pointing to the growth of other sectors such as renewable energy.

He added that the traditional model of relying heavily on infrastructure and real estate could achieve higher growth, but it would postpone the required structural adjustments and undermine the opportunities for sustainable growth of the economy, indicating that the current economic transformation will be a long and arduous journey.

This comes at a time when doubts have increased about the strength of the Chinese economy due to the violent crisis that has struck the real estate sector since last year, despite the recovery in consumer spending.