World Bank: China's GDP to grow 11.3%

Updated: 2007-09-12 14:14

China's gross domestic product (GDP) is expected to grow by 11.3 percent in 2007, said the World Bank in its quarterly report on China released on Wednesday.

China's GDP grew by 11.5 percent in the first half of 2007 from the same period last year.

The WB has previously revised its projection for China's GDP growth rate from 9.6 percent to 10.4 percent in its quarterly report released in May.

Wednesday's report held that China's economic growth pattern remains unchanged, as continued strong external trade and an investment-driven recovery in domestic demand are still major factors behind the rapid growth.

According to the World Bank's estimates, the net external trade has contributed more than one fourth to the aggregate growth, remaining at a high level as in the second half of 2006.

The trade surplus is adding to domestic liquidity and contributing to steady asset price increases, share prices in particular, said the report.

The main macroeconomic task remains containing the rising trade surplus, said the World Bank's report.

The report held that China's consumer price index (CPI), which rose 6.5 percent from a year ago in August, is expected to gradually ease later in 2007 despite upward risks.

Data released by the National Bureau of Statistics (NBS) on Tuesday showed that the accumulative increase of CPI reached 3.9 percent in the first eight months, well above the annual goal of three percent set by the government for 2007.

The report said although the consumer price index has risen to a record 11-year monthly high, it is largely attributed to higher food prices.

Food prices ballooned by 18.2 percent in August, while prices of non-food products rose 0.9 percent, said the NBS.

It also predicted the galloping Chinese economy would slow down to 10.8 percent in 2008.

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