The GDP of China's capital city Beijing is expected to grow by 6.5 percent in 2018, according to a blue book on the city's economic development released on July 13.

Published by the Beijing Academy of Social Sciences and Social Sciences Academic Press, the book says the city will continue to adjust its industrial structure and create new growth points as it continues to shift its non-essential functions to other regions. At the same time, tougher measures for energy reservation and emissions reduction will likely have an impact on Beijing's economy.

The book predicts that the overall investment growth in the city may slow down in 2018 as several major infrastructure projects such as the building of Beijing's sub-center and the new airport approach completion.

Consumer spending on health, which topped all eight areas of spending in 2017, is expected to maintain strong momentum this year as the aging population causes high demand for medical care, fitness and physical check-ups, the book says. The overall consumer spending is expected to grow by 8.8 percent year-on-year, slightly higher than last year.

The blue book also points out that the latest round of medical pricing reform will boost inflation in the city, but the ongoing supply-side structural reform is likely to change the CPI growth structure. Overall, the city's CPI is expected to grow at a moderate rate of 2.5 percent year-on-year in 2018.

For future development, the book suggests that the city should continue to restructure industries, the industrial space and the overall economy through shifting non-essential functions of the capital to other regions.

Beijing should continue to build an optimized structure of the industrial system while pushing forward new business forms and cultivating new economic growth points, it indicates.

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