CHINA / National

ADB raises nation's 2006, 2007 growth forecasts
Updated: 2006-07-18 11:30

The Asian Development Bank said on Tuesday it had raised China's 2006 growth forecast to 10.1 percent from 9.5 percent and expressed concern over the country's overheating economy.

It also upgraded China's economic forecast for 2007 to 9.0 percent from 8.8 percent.

"We are concerned with the overheating of the Chinese economy," Masahiro Kawai, head of ADB's office of Regional Economic Integration, told Reuters in an interview.

"Overheating can be corrected by appropriate monetary policy -- higher interest rates in both lending and deposits, a further increase in reserve requirements and allowing further renminbi appreciation."

On Tuesday, Beijing announced its gross domestic product in the first half of 2006 grew 10.9 percent from a year earlier.

ADB also raised Hong Kong's growth forecast for 2006 to 6.5 percent from 5.5 percent, and for 2007 to 5.2 percent from 5.0 percent.