China’s economy to see robust growth this year, World Bank says

15 February 2007

Washington, United States, 15 Feb – The Chinese economy is expected maintain robust growth this year although with a lower rate of 9.6 percent, as compared to 10.7 percent growth posted in 2006, the World Bank said in Washington Wednesday.

According to the World Bank, growth will be driven by exports and investment, which is at odds with the Beijing government’s expectations to slow down investment and boost the domestic market.

Exports are expected to rise 19.8 percent and imports 17.5 percent which, according to the World Bank, indicates that China will continue to post a balance of trade surplus.

But the figures for Chinese export do not suggest a slowdown as in January China’s trade surplus rose 67 percent year on year to US$15.88 billion.

In 2006 China’s trade surplus rose 75 percent against 2005 and reached a record figure of US$177.5 billion.

In its trade with the United States, China’s surplus rose 15.4 percent to US$232.5 billion.

The World Bank said in its statement that the dependence of the Chinese economy on exports made the country vulnerable as it was exposed to thee risk of a slowdown of the world economy or a significant fall in demand for Chinese products. (macauhub)