China's growth rate expected to fall below 7 percent, admits finance minister

London, July 13 (ANI): China's finance minister has signaled that economic growth in the country may fall even further below 7 percent during the second half of the year, with the official target figure placed at 7.5 percent.

According to BBC, Lou Jiwei's comments highlight how rapidly the country is slowing down following more than 10 percent growth for three decades, as Beijing seeks to rein in a construction boom.

The report said that the newly installed government of President Xi Jinping and Premier Li Keqiang was intent on rebalancing the economy away from reliance on investment, construction, heavy industries and exports, and towards consumer spending by China's growing middle class.

However, the transition is expected to be difficult and consumer spending is starting from a small share of the economy, the report added.

Last month, the Chinese inter-bank lending market had frozen up, raising questions from Chinese banks about the financial health of their peers, the report further said. (ANI)

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