Chinese GDP up 9.4 pct in 2005

26 December 2005

Beijing, China, 26 Dec – China’s central bank has revised its GDP forecast for 2005 from 9.2 percent to 9.4 percent, the Financial News daily reported Monday.

Tang Xu, head of the bank’s research department, said inflation this year was predicted to fall from 2 percent to 1.8 percent, adding that this rate would level to 1.3 percent in 2006, when GDP would rise by 8.8 percent.

Beijing’s central bank said factors influencing inflation in 2006 would be rising oil prices, as well as increases in some domestic costs due to the state easing its price controls on many services and goods.

The China Securities Journal cited a senior Beijing economist last week as saying that GDP growth next year in China would fall between 8 and 9 percent.

Domestic consumption is set to climb 13 percent over the next 12 months and fuel China’s continuing economic growth. (macauhub)