China’s Q2 GDP may hit 10.8%
Consumer Price Index expected to touch 2.9% over the period.
By Agencies |
SHANGHAI: China’s gross domestic product is forecast to rise 10.8% in the second quarter of 2007, while the consumer price index is expected to gain 3% over the period, the State Information Centre said on Tuesday. The centre, a research body under the National Development and Reform Commission, China’s top economic planning agency, released the forecasts in a report published by the official China Securities Journal.
This would bring the GDP growth rate for the first half of this year to 11%, while the growth rate for CPI in the first half would be 2.9%, the report said. China’s economy grew 11.1% in the first quarter on the back of booming investment and exports, fuelling speculation that interest rates would need to rise again soon. The country’s CPI grew by 2.7% in the first quarter.
The centre suggested several measures to help prevent overheating in the economy: Accelerate the adjustment of import and export bodies to rein in over-rapid growth in the trade surplus. Significantly develop capital markets and encourage innovative Chinese companies, unlisted or listed overseas, to list domestically.
Take appropriate opportunities to raise interest rates and reserve requirements. Encourage investment into areas important for public use but with low income, including railroads, public roads, ports and transport systems. China last month ordered banks for the second time in a month to hold more of their deposits in reserve, in the latest move to prevent credit and investment growth from destabalising the world’s fourth largest economy.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
