BOFIT Forecast for China 2012-2014 / 2

China s economic growth slowed throughout spring and summer, but stimulus measures implemented and planned should support economic growth in 2012 and 2013 at around 8 % p.a. Over the longer term, structural factors depress growth, with GDP growth falling to 7 % p.a. in 2014. Economic policy leeway and the option of further stimulus measures are restricted by the fallout from excessive bank lending during the previous round of stimulus. The risk of below-forecast growth for the Chinese economy increases with dete- rioration in global economic conditions.