CHINA / National |
Top bank: economy expected to grow 10.8% in 2007(Agencies)Updated: 2007-06-29 13:04 SHANGHAI - Growth in China's economy is expected to expand at a rapid rate in 2007, with inflation ticking higher to 3.2 percent, AFP reported, citing China Securities Journal. The nation's gross domestic product (GDP) should expand 10.8 percent this year, slightly higher than the 10.7 percent in 2006, the fourth consecutive year of double-digit growth, according to the bank's research report published in the China Securities Journal. It said that after the blistering 11.1 percent growth recorded in the first quarter, the second quarter pace of growth should slip to 10.9 percent followed by 10.7 percent and 10.6 percent in the third and fourth quarters respectively. "The trend in the high growth of gross domestic product should suggest an adjustment, but the extent of a pull-back is unlikely to be large," the bank said. Recent inflation pressure was expected to ease in the second half, the report said, but was still above the official target of 3.0 percent. The consumer price index, a key measure of inflation, hit a two year high of 3.4 percent in May. The People's Bank of China also went on to add that growth in the trade surplus would fall gradually amid faster growth in imports and a decline in exports. It said this was partially due to cuts or the removal of tax rebates for exports and imposing a tax on energy intensive export products. China's trade surplus for May hit 22.45 billion dollars, up nearly 73 percent from a year earlier and was the second-highest ever behind February's figure of 23.7 billion dollars. |
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