Economist sees 9% GDP growth
(Reuters)
Updated: 2006-04-24 11:54 China's economy will grow at least 9 percent this
year while inflation could nudge higher than expected as the government pushes
oil price reforms, a senior central bank economist said in remarks published on
Monday.
"GDP growth will be at least 9 percent this year while price
rises could be higher than 2 percent if oil reforms proceed," the China
Securities Journal quoted Jiao Jinpu, deputy head of the research bureau of the
People's Bank of China, as saying.
China's annual economic growth accelerated to 10.2 percent in the first three
months of this year from 9.9 percent in the previous quarter, strengthening the
case for tightening steps, which may include raising required bank reserves and
a quicker rise in the yuan.
But annual consumer price inflation slowed to 0.8 percent in March from 0.9
percent in February, extending a downward trend of recent months, government
data showed. The central bank has forecast inflation could be around 2 percent
this year.
The government has unveiled a series of tax and pricing reforms to better
link its oil markets to global benchmarks and encourage energy efficiency to
help sustain economic growth.
Separately, the Beijing Unirule Institute of Economics, an independent
think-tank, said in a research report it expected the economy to grow about 10
percent in the second quarter.
The think-tank urged the central bank to widen the yuan's trading band to
allow greater currency flexibility to help head off economic overheating,
according to the report published in the China Securities Journal.
"Raising bank reserve requirements is feasible. But it will be more
meaningful to let residents hoard more foreign exchange, reduce market
intervention and widen the floating band," it said.
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