China to be key growth engine for Asia

Updated: 2006-12-12 19:31

HONG KONG -- China will remain key growth engine for Asia Pacific in 2007, according to a report released Tuesday by Standard and Poor's.

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The report combines Standard and Poor's predictions for equity markets, credit quality and economic performance across the region next year, and includes the latest forecasts from Standard and Poor's Ratings Services and Standard and Poor's Equity Research.

According to the report, the economic development in Asia Pacific will continue to benefit from the three significant subregional economies in 2007 -- China, India, and Japan.

China, in particular, continues to be a key driver of regional growth, with the economic slowdown in the US expected to dampen China's growth momentum only marginally, the report said.

It said that Chinese real GDP growth in 2006 is likely to reach 10.5 percent, after hitting a high of 11.3 percent in the second quarter. GDP growth in 2007 should hit close to 10 percent, due to factors including continuing macroeconomic stabilization measures, tightening fiscal stance, and an over-performed stock market in 2006.

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