Chinese economy may grow 5.9 pct this year: Credit Suisse economist

An economist of Credit Suisse Group AG expects China's gross domestic product to grow 5.9 percent, higher than the 5.5 percent target set by the world's second-largest economy, Bloomberg reported Thursday.

Yi David Wang, chief China economist at Credit Suisse Group AG, said he could revise his projection closer to 5.6 percent once the impact of coronavirus lockdowns becomes clearer.

According to the report, Wang's prediction is based on three reasons. "First, coronavirus lockdowns will hurt production less than consumption. Second, government and corporate investment will grow strongly. Finally, investment in housing can still grow despite a slump in sales as existing projects still need to be finished," said the report.

Wang argued that the recent export data suggests that global demand for Chinese production will remain elevated this year, as the rate of export growth remains above pre-pandemic levels.

China's total imports and exports expanded 10.7 percent year on year to 9.42 trillion yuan (1.48 trillion U.S. dollars) in the first quarter of 2022, official data showed Wednesday.

In the period, exports surged 13.4 percent year on year to 5.23 trillion yuan (821.7 billion dollars), while imports rose 7.5 percent to 4.19 trillion yuan (658.3 billion dollars), according to the General Administration of Customs.