China’s economic growth will slow to 6.8 percent year-on-year in 2016 compared to this year’s likely 6.9 percent expansion, the People’s Bank of China said in a research report published on Wednesday.

“Although downward pressures on growth will persist for a while due to overcapacity, profit deceleration in the manufacturing sector, and rising [numbers of] non-performing loans, we expect that… positive factors will gradually increase in 2016,” news agency Reuters quoted the report as saying.

The central bank added such supporting factors included the recovery of real estate sales; the impact of previously implemented macroeconomic and structural policies; and some modest improvement in external demand.

China’s fixed-asset investment growth would accelerate to 10.8 percent in 2016 from 10.3 percent this year, said the bank’s report. Retail sales were expected to expand by 11 percent next year, the central bank added. Exports are forecast to rise 3.1 percent in value during 2016 while imports are likely to increase by 2.3 percent in value, reversing the declines this year.

The Chinese Academy of Social Science, a Government think tank, said on Wednesday it forecast 6.6 percent to 6.8 percent growth for China in 2016.

In the first nine months of this year, China’s economy expanded by 6.9 percent year-on-year, according to official data.