China to register moderate growth: ADB
China's economy will grow moderately this year and in the next but it will still remain one of the world's fastest growing economies, the Asian Development Bank (ADB) said Tuesday.
By Agencies |
MANILA: China's economy will grow moderately this year and in the next but it will still remain one of the world's fastest growing economies, the Asian Development Bank (ADB) said Tuesday.
In a report, the ADB projected a 10 per cent growth this year that will further ease to 9.5 per cent in 2009.
The cool down is a result of the combining effects of a reduced trade surplus, slower growth in investment and the global economic downturn, the report entitled Asian Development Outlook 2008 Update said.
China's Gross Domestic Product (GDP) grew 11.4 per cent year-on-year with the risks of spiraling inflation and economic overheating rising. For the first half of 2008, the economy grew at a reduced pace of 10.4 per cent.
"Weak external demand and the impact of tightening of monetary policy trimmed economic expansion to a still-rapid 10.4 percent in the first half of this year," said ADB chief economist Ifzal Ali.
Ali said a growth rate of 9.5 per cent in 2009 would bring the economy back to its long-run sustainable growth range of 9-10 per cent, easing the strains on energy, inflation, and the environment.
For 2009, the inflation is likely to hit 5.5 per cent, instead of 5 per cent projected in April. Price increases for fuel and electricity are anticipated, which will lead to higher production costs that may be passed onto consumers, the report said.
In a report, the ADB projected a 10 per cent growth this year that will further ease to 9.5 per cent in 2009.
The cool down is a result of the combining effects of a reduced trade surplus, slower growth in investment and the global economic downturn, the report entitled Asian Development Outlook 2008 Update said.
China's Gross Domestic Product (GDP) grew 11.4 per cent year-on-year with the risks of spiraling inflation and economic overheating rising. For the first half of 2008, the economy grew at a reduced pace of 10.4 per cent.
"Weak external demand and the impact of tightening of monetary policy trimmed economic expansion to a still-rapid 10.4 percent in the first half of this year," said ADB chief economist Ifzal Ali.
Ali said a growth rate of 9.5 per cent in 2009 would bring the economy back to its long-run sustainable growth range of 9-10 per cent, easing the strains on energy, inflation, and the environment.
ADVERTISEMENT
ADB said it has also revised the inflation projection for the whole of 2008 from 5.5 per cent to 7 per cent on the back of high food prices.For 2009, the inflation is likely to hit 5.5 per cent, instead of 5 per cent projected in April. Price increases for fuel and electricity are anticipated, which will lead to higher production costs that may be passed onto consumers, the report said.
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
