Investors shouldn't fret over lower growth forecasts for China, economist and senior fellow at Yale University Stephen Roach told CNBC, noting there are no magic numbers when it comes to economic growth.
"[Just] like the Fed [Federal Reserve] is backing away from magic numbers on the U.S., there is no magic number for any economy," said Roach, who previously worked as chairman for Asia at Morgan Stanley.
China's economy is now more geared towards the services industry, which is positive according to Roach as each unit of output in a services-based economy generates 30 percent more jobs than in a manufacturing and construction-based economy.
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"What used to take 10 percent of Chinese growth to absorb surplus labor and deal with poverty can now be done at 7 percent. So they can grow much, much more slowly, and still absorb the surplus labor," he added.