The economic growth of China will slow to 6.2 percent by 2017 as the world’s second largest economy undergoes restructuring, said the Organisation for Economic Co-operation and Development (OECD).

In the latest edition of its biannual economic outlook report released on Monday, the Paris-based body said it expects China’s economic expansion to reach 6.8 percent this year, “as the economy transitions from industrial to services-based growth and deals with the imbalances in property and heavy industries”.

The OECD warned that “achieving a smooth unwinding of these imbalances presents challenges”, and growth could slow further, to 6.2 percent in 2017.

In the third quarter of this year, China’s economic expansion slowed to 6.9 percent, the slowest pace in more than six years. China’s President Xi Jinping, announced earlier this month that the average annual economic growth of China in the 2016-2020 period should be no fewer than 6.5 percent.

In the report, the OECD also noted the Brazilian economy was expected to contract by 3.1 percent and 1.2 percent respectively in 2015 and 2016, before achieving a 1.8 percent growth in 2017.

In Portugal, the economy would expand at a rate of 1.7 percent this year and would gradually slow to 1.5 percent growth by 2017, the report added.