Economy’s Structural transformation will slow growth in the short term, PBOC governor says

The People’s Bank of China (PBOC) governor, Pan Gongsheng, said that the pace of China’s economic growth must be accepted in the short term as growth shifts from relying on real estate investment and infrastructure projects to other growth drivers.

“I am confident that the world’s second-largest economy will achieve good and sustainable growth in the coming year and beyond,” Pan Gongsheng said during a conference organized by BIS and the Hong Kong Monetary Authority.

“The traditional model of relying heavily on infrastructure and real estate could achieve higher growth but would postpone the required structural adjustments and undermine the economy’s sustainable growth opportunities,” the People’s Bank of China governor added.

“The current economic transformation will be a long and arduous journey, but we must make it,” Pan Gongsheng said.

This comes at a time of growing doubts about the strength of China’s economy due to the violent crisis that has hit the real estate sector since last year.