Chinese CASS forecasts 7.4% economic growth in 2014

The Chinese Academy of Social Sciences (CASS) on Tuesday reported on China's economic outlook, saying that GDP will grow by about 7.4 percent by the end of 2014. Slower growth this year will be caused by shrinking fixed asset investment and net exports of cargo and services, while the steady expansion of consumption will not provide enough stimulus to the economy, the report said. The next years will witness growths of about 7.5 percent each year amid "structural slowing down". Central fiscal policy this year will improve fund use, ease burdens on small and micro business through tax reforms, guarantee financial stability as well as prevent liquidity risks and debt default incidents.Sustainable urbanization and infrastructure construction with more social capital, modern services and high-end manufacturing industry will fuel stable economic development. The CASS also reported on real estate on Tuesday, indicating wider gaps in housing prices between different cities this year, through lack of a healthy expansion mechanism. Some megacities with large migrant populations will face pressure from housing price rises, while small cities with excess construction will see property bubbles. The regulations on the property industry will further push forward property taxes in more pilot cities and continue restrictions in housing purchase and mortgages in megacities this year, the CASS said.