TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Tuesday he expects China’s economy to sustain growth of around 6% in coming years, thanks in part to the effect of Beijing’s stimulus measures.
But he said the world’s second-largest economy would likely see growth slow below 6% in the long run, as its working-age population starts to decline.
“The effect of China’s policy measures is taking somewhat long to appear. But China’s economy will likely sustain growth of around 6% for the time being,” he told parliament.
Kuroda also said he did not expect China’s excess debt to trigger a crisis that would cause financial disruptions, as banks are making some progress reducing bad loans.
Reporting by Leika Kihara; Editing by Chris Gallagher