PBoC sees China growth slowing to 6.8% next year

Economic growth in the world’s second-largest economy is expected to slow to 6.8% in 2016 from 6.9% this year, according to the People’s Bank of China.

The PBoC attributed the slight slowdown to industrial overcapacity, rising bad loans from banks and sluggish demand for the nation's goods.

The central bank said China's consumer price index is likely to rise to 1.7% next year, while the producer price index will drop 1.8% year-on-year.

The PBoC expects China's fixed-asset investment to increase 10.8% next year from 2015 and retail sales to rise 11.1% on the year.

China's exports, meanwhile, are seen rising an annual 3.1% next year, with imports expected to grow 2.3% in 2016 but drop 14.8% this year.

The bank also said it expects China's fixed-asset investment to grow 10.3% in 2015, down from a 15.7% growth last year.