China: Economy expected to grow by over 10 percent in 2008

6 December 2007

Beijing, China, 6 Dec – The Chinese economy is expected to see growth of over 10 percent in 2008, for the sixth consecutive year, despite government efforts to slow the country’s economic expansion, the state Chinese press reported, citing official studies.

China, the second-largest Asian economy, is expected to grow 11 percent in 2008, which is slightly lower than the 11.6 percent expected for 2007, said the China Securities Journal, which cited a study by the Chinese Academy of Social Sciences, the highest research institute of the Chinese government.

The same study projected inflation to rise to 4.5 percent in 2007 before falling to 4 percent in 2008, according to the journal.

According to the Academy’s report, the trend for the economy to overheat is increasing, with Academy advising a reduction of investment levels in fixed assets.

In an attempt to slow economic growth, China has already increased its interest rates five times this year and raised bank reserves nine times. (macauhub)