SHANGHAI: The Chinese economy is on track to grow “around 5%” this year as per the government’s target, supported in particular by robust infrastructure and manufacturing investment, and consumer spending is expected to pick up as well over the course of the year, says HSBC chief Asia economist Fred Neumann.

In an exclusive interview with China Daily, Neumann said: “The data for the beginning of the year have been encouraging. China’s economy is likely to deliver a steady, gradual recovery.

“The policy setting is mildly supportive of a further pick-up in growth, and the drag from a deflating property sector should gradually fade over time.”

The economist said he expects the Chinese government to roll out measures incrementally to further boost economic recovery, focusing on specific areas like the housing market, rather than opt for a broad-based stimulus.

“Stimulating housing demand and supporting developer finances - these remain two important approaches to stabilising the property sector. Improvement in sentiment in the property market should also support consumption,” he said.

 - China Daily