It is estimated that Chinese economic growth will decelerate to 6.5% for the year ahead, according to an outlook report published by the Bank of China, National Business Daily reported.

The situation China is facing in 2019 will become more complicated, said Zong Liang, chief researcher of the International Finance Institute at the Bank of China.

Domestically, China’s economy is in a critical period of “great adjustment” where different industries and regions, business and finance, traditional finance and new finance are undergoing major differentiation and integration.

Externally, uncertainties raised by multilateral trade friction, monetary policy shifts in developed economies and financial market turmoil in emerging economies will continue to put pressure on China, as well as the slowdown of the global economy.

The report also said consumption and investment growth may accelerate next year, as the new tax reform will increase residents’ income and a series of policies will be introduced to prop up investment, in particular infrastructure investment.