World Bank scales down its GDP forecast for China
China's economic growth has begun to inch down from its record rates earlier in 2007, the World Bank said in its China quarterly update.
By PTI |
BEIJING: The World Bank has scaled down its forecast of China's Gross Domestic Product (GDP) growth to 9.6 per cent from 10.8 per cent for 2008, but maintained the Communist giant's economic growth would still be robust despite a global slowdown.
China's economic growth has begun to inch down from its record rates earlier in 2007, the bank said in its China quarterly update released here on Monday.
The report attributed the slowdown in the fourth quarter to lower contribution of net exports, as external demand slowed, though it was partly offset by stronger domestic demand.
The global outlook has weakened and is uncertain, but China is likely to grow robustly in 2008 and is well positioned to stimulate the demand, if needed, the update released at a news conference here said.
Projecting a solid 9.6 per cent GDP growth for 2008, it said, if the global slowdown will be more pronounced, China is in a strong macro-economic position to stimulate the demand by easing fiscal policy or credit controls.
On inflation, which has emerged as a worry to the government, the Bank said, macro-economic policy needs to address the challenge.
Overall price pressures should ease in 2008 as some factors behind high food prices taper off, it said, but added, there are risks, including from international food prices and wage cost pressures and inflation is not likely to decline to low levels soon.
China's economic growth has begun to inch down from its record rates earlier in 2007, the bank said in its China quarterly update released here on Monday.
The report attributed the slowdown in the fourth quarter to lower contribution of net exports, as external demand slowed, though it was partly offset by stronger domestic demand.
The global outlook has weakened and is uncertain, but China is likely to grow robustly in 2008 and is well positioned to stimulate the demand, if needed, the update released at a news conference here said.
Projecting a solid 9.6 per cent GDP growth for 2008, it said, if the global slowdown will be more pronounced, China is in a strong macro-economic position to stimulate the demand by easing fiscal policy or credit controls.
On inflation, which has emerged as a worry to the government, the Bank said, macro-economic policy needs to address the challenge.
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Overall price pressures should ease in 2008 as some factors behind high food prices taper off, it said, but added, there are risks, including from international food prices and wage cost pressures and inflation is not likely to decline to low levels soon.
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