World Bank raises economic growth forecast for China to 10.4 percent

16 August 2006

Beijing, China, 16 Aug – The World Bank Tuesday raised its forecast for China’s economic growth in 2006 to 10.4 percent, the international financial institution said.

The previous projection pointed to growth of 9.5 percent of the Chinese Gross Domestic Product (GDP).

In 2007, the Chinese economy is expected to slow, with the World Bank forecasting GDP growth of 9.3 percent.

If these figures are confirmed, China’s economy would be amongst those in the world with the greatest growth rate.

In the first half of last year, China’s economy grew at a rate of 10.9 percent and is expected to grow 11.3 percent in the second half of the year, the highest level in the past 10 years.

Investment is driving growth, in an economy in which industry has a significantly greater weighting than the services sector, according to the World Bank.

The World Bank also forecasts that inflation will remain low in China over the next few years and that the value of the country’s currency (the yuan) will continue to rise against the dollar. (macauhub)