How will China fare in 2016? Forecast of 4 Indicators

Krishna Bhimavarapu, Research Analyst - Forecasting

Trading in China's main stock index was suspended twice in the first week of January, causing authorities to abandon new circuit-breaking mechanism for halting trade in overly volatile markets. The latest events is a continuation of uncertainties faced by the country over the past year that included slowing manufacturing, yuan devaluation and a stock market panic that wiped out billions.

How will China fare in 2016? As the economy continues to cool down, and with expected slowdown in investments, consumption's share of GDP may grow relative to investments. Based on current reading, Beroe estimates China to clock an annual GDP growth of 6.6%, while the Street estimates range from 5.8% to 6.8%. Also, we expect inflation to stabilize between 1.2%-1.5%.