China’s Economy Not Slowing As Fast As Expected

The World Bank’s latest quarterly economic outlook for China suggests that the economy is not slowing as rapidly as previously thought. The Bank forecasts GDP growth of 9.3% for this year. Last November, it had expected 8.7% growth, the same rate it now forecasts for  2012. China’s economy grew at 10.3% in 2010.

The Bank also warns that inflation and the property market remain a risk, with, in the latter case, the effectiveness of measures to slow down private house building in part being offset by the government’s ambitious social housing construction plans. While inflation is expected to moderate eventually as the pace of food price rises continues to slow, much of the impact of higher oil and industrial commodity prices is still working through the pipeline, so inflation expectations are high. Thus, the Bank says, the government should continue to tighten monetary policy.

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2 Comments

Filed under Economy

2 responses to “China’s Economy Not Slowing As Fast As Expected

  1. this is, really, so true about China’s economy. they are booming economically and its not slowing down.
    personally, i have a special interest in China and when i saw this blog on the fastest growing wordpress blogs (on my dashboard) [and after checking it out]…i must say, i really like it. ; )
    ~ Zack

    http://greenalgaeandgarlic.wordpress.com

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