China: Economy expected to grow by over 11 percent in the fourth quarter

13 November 2007

Beijing, China, 13 Nov – The Chinese economy is expected to maintain its high level of growth until the end of the year, with a state research institute forecasting expansion of over 11 percent in the final quarter of the year, the Chinese state press reported Monday.

Calculations from the institute, the State Information Center, point to the expansion of the Chinese gross domestic product (GDP) by 11.2 percent between October and December 2007, against 11.5 percent in the first quarter of the year, according to the China Securities Journal.

China has increased its interest rates five times throughout the year and, last weekend, it announced the ninth increase of its bank reserves, or the amount of cash its retail banks must deposit with the country’s central bank.

The State Information Center expects 11.4 percent GDP growth over the whole of 2007, with inflation of 4.6 percent, against just 1.5 percent in 2006.

China’s trade surplus reached US$27.1 billion in October, according to figures from China’s State Customs Department.

The accumulated surplus is of US$212.4 billion in the first ten months of the year, or 59 percent more than in the same period of 2006, when China had a record surplus of US$177.5 billion.

In the period China’s exports increased 22.3 percent to US$107.7 billion and imports rose 25.5 percent to US$80.7 billion. (macauhub)