Despite a volatile global environment and weak domestic market demand, China's economy will still be able to post growth of 6.8 percent next year, according to the Bank of China (BOC) Hong Kong Ltd.

The global environment next year may not be favorable for export but BOC Hong Kong said growth in China's consumption and infrastructure spending will continue to drive the economy, albeit at a slower pace.

Like Us on Facebook

At a press conference in Hong Kong, BOC Hong Kong's deputy general manager of economic and strategic planning department, E Zhihuan, said domestic market demand and global environment will affect mainland China's export growth.

He, however, stressed that China still has other fundamentals, such as infrastructure and consumption spending, which will drive the economy to grow by 6.8 percent

BOC Hong Kong's forecast is similar to the projection of the People's Bank of China (PBOC), the mainland's central bank.

The PBOC projected a lower economic growth next year from this year, although it expects more positive factors to emerge in 2016.

A report published by the official Xinhua news agency showed that the central bank has projected the 2016 economic growth at 6.8 percent, or slightly lower than the 6.9 percent growth forecast for 2015.

Despite several factors that are expected to become major drags on the economy, the central bank said factors such as a recover in property sales, effects of macro and structural policies, and some modest improvement in external demand, among others, will help underpin the overall growth next year.

The central bank also predicted a 1.7 percent consumer price index inflation and current account surplus at 2.8 percent of GDP for next year.

Meanwhile, economists believe China will keep its stimulus measures next year to support the country's economic growth.

In a report titled "China's Economy in 2016", Bloomberg economists said the People's Bank of China, the mainland's central bank, is forecast to keep its stimulus measures and will likely make up to 25 basis point cuts in the loan rate and multiple cuts in the reserve requirement ration in the first six months. 

TagsChina GDP, China Economic Forecast, China 2016 Forecast, china economic growth, China GDP Forecast, Bank of China, PBOC