World economy grows 3% in 2016: CASS

The Chinese Academy of Social Sciences sees a lower outlook for the world economy in 2016, compared with that of the International Monetary Fund, but crude oil prices will stabilize at a low level.

While estimating this year's GDP growth worldwide to be 3.1 percent, CASS predicted next year's GDP growth?- measured in purchasing power parity term?- will grow by 3 percent. This is significantly lower than IMF's 3.6 percent projection.

Measured in market exchange rate terms, the world's economy is expected to grow 2.5 percent, compared with the 3 percent projected by IMF.

CASS predicted the US economy will grow between 2.4 to 2.6 percent, and rebound to 2.6 percent. The Euro zone will grow by 1.6 to 1.8 percent in 2016.

The think tank estimated international crude oil will continue to fluctuate around a low level, with yearlong average prices between $50 to $65. The price will remain at this level for the next five to 10 years.

"The price will increasingly benchmark on the production cost, which is at $45 per barrel. There is not too much room for a continued slump," said Zhang Bin, a researcher with the Institute of World Economics and Politics under CASS.