Chinese bank predicts 7.2-percent growth in 2015

China's Bank of Communications (BOCOM) has predicted 7.2-percent growth for the country's economy in 2015, according to the bank's new outlook report.

The report said uncertainties in the domestic and global situation will continue affecting China's economy and result in more exports, less investment and stable consumption.

Moderate economic recovery in the United States will help strengthen China's 2015 exports with faster expansion of about 7 percent.

It said the surplus in commodity and service trade will hit 420 billion U.S. dollars and 195 billion U.S. dollars, respectively, while the actually utilized foreign capital will stand at 125 billion U.S. dollars.

Fixed investment will see slower growth of 14 percent because of overcapacity and stricter supervision of local debt and financing.

New consumption patterns and a booming capital market will ensure a stable growth rate of about 11.8 percent in total retail sales volume by the end of this year.

The bank estimated 13.5-percent growth in new loans year on year to 11 trillion yuan (1.79 trillion U.S. dollars), and the capital market will see total social financing of 3.6 trillion yuan through bonds and stocks.

BOCOM forecast that China's 2015 GDP growth will slow to around 7.2 percent, but remained cautiously optimistic about development, noting that deepening reforms will improve economic efficiency and bring benefits.

The report also predicted that the country's consumer prices will not face sharp surges amid prudent monetary policy, but weak domestic demand and overcapacity will continue to drag down the growth of producer prices.

Meanwhile, China's central bank is likely to announce slight cuts in interest rates and the reserve requirement ratio, said the report.

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