REUTERS/ China 's annual economic growth is likely to slow to 6.8 % in 2016 from an average 6.9 % this year , the People 's Bank of China ( PBOC ) reported in a working paper yesterday . It cites the combined effects of China ’s fiscal and monetary policies in this year and recent downward pressure on the economy due to overcapacity , profit deceleration , rising non - performing loans and appreciation in the CNY ’s real effective exchange rate ( REER ) inhibiting exports , as the main factors affecting the country ’s economic growth . Nevertheless , significant growth in China ’s domestic consumption is expected as retail sales are predicted to grow an annual 11.1 % in 2016 , whilst exports are projected to rise an annual 7 % and imports are to forecast to grow 7 % , according to the PBOC .
China 's annual economic growth is likely to slow to 6.8 % in 2016 from an average 6.9 % this year , the People 's Bank of China ( PBOC ) reported in a working paper yesterday . It cites the combined effects of China ’s fiscal and monetary policies in this year and recent downward pressure on the economy due to overcapacity , profit deceleration , rising non - performing loans and appreciation in the CNY ’s real effective exchange rate ( REER ) inhibiting exports , as the main factors affecting the country ’s economic growth . Nevertheless , significant growth in China ’s domestic consumption is expected as retail sales are predicted to grow an annual 11.1 % in 2016 , whilst exports are projected to rise an annual 7 % and imports are to forecast to grow 7 % , according to the PBOC .