The Chinese Academy of Social Sciences, or CASS, has said in a forum that China's economy will grow by a slowed rate in 2016. In its latest publication, the Outlook for China's Economy in 2016, the institute made predictions regarding key indicators of the country's economy.
The institute expects China's GDP to grow 6.7% in 2016. Consumption, investment and international trade will contribute 4 percent, 2.6 percent and 0.1 percent respectively to the growth rate.
"We need to focus on the several problems in the economy. A weak industry will create less jobs. On the other hand, the decline in the GDP growth poses challenges to economic development. The government needs to strengthen incentive policies on consumption," said Yang Cuihong, researcher, Chinese Academy of Social Sciences.
Experts say consumer prices will continue to grow moderately in 2016 due to the growing demand and loose monetary environment. The consumer prices index is expected to increase by 1.8 percent next year.
The CASS has also made predictions on agriculture, industry and real estate.
"In 2015, we encountered new situations. For example, since September, the prices of three main grain products have dropped significantly," Yang said.
"This will lead to a decline in farmers' income and not to mention that, the costs are still rising. Grain will be a problem next year, especially the output in Autumn.
