Economy

Double-digit GDP growth forecast this year

(Xinhua)
Updated: 2010-02-07 15:43

A top Chinese think tank forecasted the nation's economy would experience a mild rebound this year, with gross domestic product expanding around 10 percent year on year.

Among the three economic engines, investment is expected to contribute 6.3 percentage points to the GDP growth, while consumption and net export will contribute 4.2 and 0.5 percentage points, respectively, the Center for Forecasting Science of the Chinese Academy of Sciences said in a report issued on Saturday.

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Investment would continue to increase as a result of the government's economic stimulus measures, with focuses in agriculture, transportation, and industries relating to people's livelihood, but the annual investment growth would decrease from 30.1 percent in 2009 to 25 percent, the report said.

The country's foreign trade is expected to step out of recession as overseas demand rises due to the recovery of the world's economy.

Total value of the foreign trade would advance 17.6 percent year on year, with export up 16.6 percent and import up 18.9 percent, according to the report.

The report also estimated that consumption price index (CPI), a major gauge of inflation, would rise 3.06 percent from a year earlier, as a combination of economic revival, ample liquidity, and inflation expectations would drive up the prices.

Data from the National Bureau of Statistics (NBS) showed China's economy expanded 8.7 percent last year, of which investment growth contributed 8 percentage points, consumption contributed 4.6 percentage points, while net exports dragged down GDP growth by 3.9 percentage points due to the sluggish external demand.