China’s GDP expected to rise 10.8 pct in 2007, study says

10 July 2007

Beijing, China, 10 July – China’s Gross Domestic Product (GDP) is expected to grow 10.8 percent in 2007, according to estimates from the Economic Survey Center of the People’s University of China, published by the press Monday and which are in line with official projections.

The GDP growth forecast from the university is identical to that of the country’s central bank, announced Monday and which is slightly lower than the 10.9 percent projected by the State Information Center.

The university’s report pointed to a 21.8 percent rise in fixed asset investment and 60 percent in China’s trade surplus, challenging the pledge made by the central government at the beginning of the year to reduce these indicators.

The 16.2 percent rise in consumer spending is the only indicator in line with Beijing’s commitments to promote economic growth based on domestic consumption and reduce the weight of investment and exports in GDP growth.

On June 13, Chinese prime minister Wen Jiabao led a meeting of the State Council in which he warned of excessive industrial output, trade surplus and investment.

In order to try to cool the economy down, the Chinese central bank has taken steps for macro-economic control, such as increasing interest rates and the levels of cash reserves that banks must deposit in the central bank.

China’s GDP rose 11.1 percent in first quarter (macauhub)