China's economy set for steadier growth: state research centre

Beijing

THE risk of a steep slide in China's economy has been reduced, the head of a government research centre said on Sunday, adding that the country had moved through an "L-shaped" pattern of slowing to now "horizontal" growth.

China's economy grew 6.7 per cent last year, according to the government, the slowest pace in 26 years. The country met its growth target with support from record bank loans, a speculative housing boom and billions in government investment.

But as Beijing moves to cool the housing market, slow new credit and tighten its purse strings, China will have to depend more on domestic consumption and private investment. The government recently trimmed its economic growth target to ab…