Chinese Inflation is Expected to Slow
China is about to publish data on foreign exchange reserves, trade, inflation and bank lending data for January. Business surveys show a steady start until 2018, with further expansion of production and sustained growth in services. But most economists still expect a gradual loss of momentum in the coming months, as borrowing costs rise and the real estate market cools.
It is expected that the testimony to inflation will be slightly cooled. It is forecast, that industrial inflation will slow for the third consecutive month, while consumer inflation is likely to fall to the lowest level since July. It is also expected that bank lending will be the highest for the year in the amount of about 2 trillion yuan ($317.7 billion), after the fall in December.
Meanwhile, foreign exchange reserves probably grew during the 12th consecutive month, as a strong yuan and tight rules hinder the outflow of capital. Last year, China's economy grew by 6.9%, thanks to the growth in the construction sector and the recovery of exports. Economists expect the rate to slow to 6.5% this year, which could affect other emerging markets and commodity markets.