World Bank raises estimate for China’s economic growth

13 September 2007

Washington, USA, 13 Sept – The World Bank said Wednesday in Washington it had raised its projection for China’s economic growth in 2007 from 10.4 percent to 11.3 percent.

According to the bank, the Chinese trade surplus and inflation are the biggest threats to the sustainable growth of China, after the country’s gross domestic product (GDP) grew by 11.9 percent in the second quarter of 2007, and 11.5 percent in the first half of the year.

For 2008, according to the World Bank, China’s GDP is expected to grow by 11 percent.

In the quarterly review of the Chinese economy presented by the bank in June, the bank forecast growth of 10.4 percent, but a rise in exports led to this forecast increasing.

According to the report, the country’s growth remains solid, but the Beijing government must correct its pattern of growth through fiscal policies and structural adjustments.

China said Tuesday that its trade surplus for August was its second highest monthly surplus ever and totalled US$24.97 billion, or 32.82 percent more than in August 2006.

In the first eight months of the year, China’s trade surplus totaled US$161.76 billion. (macauhub)