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China 2005 GDP growth forecast at over 9%
(AP)
Updated: 2005-11-09 01:30

China's central bank said it expects the economy to motor ahead with growth in gross domestic product ( GDP) expected to surpass 9.0 percent, with a rise in inflation of about 2.0 percent.


A Chinese worker assembles an engine at a motorbike factory in Chongqing. China's central bank said it expects the economy to motor ahead with growth in gross domestic product (GDP) expected to surpass 9.0 percent, with a rise in inflation of about 2.0 percent. [AFP]

The third quarter monetary report from the People's Bank of China reiterated that it would maintain prudent monetary policy in the fourth quarter as consumption, investment and net exports were expected to push forward economic growth.

"The central bank will ... continue its prudent monetary policy, maintain the continuity and stability of its policy in the fourth quarter, strengthening its fine-tuning (ability)," the report said Wednesday.

China's GDP grew 9.4 percent in the first nine months of 2005, while its main inflation index, the consumer price index (CPI), rose 2.0 percent.

It warned that it expected a rebound in fixed asset investment, which grew 26.1 percent in the first three quarters of the year, but played down the risk of deflation that some analysts have warned about as prices slipped over the year.
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