Economy growth expected to continue   By Fu Jing (China Daily)  Updated: 2006-07-18 06:53  
 Economists believe that the country's faster-than-expected growth will 
continue in the second half of the year, despite government efforts to slow down 
development in some sectors.
 
 
 
 
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 Labourers work on the scaffoldings at a construction site in 
 Nanjing, capital of east China's Jiangsu province July 13, 2006. 
 [Reuters] |   "Slightly heated" was the phrase that the World Bank (WB) used to describe 
the economy in the second quarter, after an investment spree, loose credit 
supply, trade imbalance and price hikes of raw materials led them to estimate 
growth of higher than 10 per cent. 
The year's total GDP growth is also likely to be around 10 per cent and 
exceed the government's planned target of 8 per cent, said Zhao Min, an 
economist with the WB China Office. 
 "We believe that China's economy is a little bit heated, but during a 
transitional period China can and has released great potential to achieve fast 
economic growth," Zhao told China Daily.
 China's economy can continue to grow at a "rational speed" of 9-10 per cent 
annually for some years to come, Zhao said. 
 Premier Wen Jiabao said over the weekend that guarding against a rapid rise 
in fixed asset investment while keeping economic growth at a relatively stable 
pace has topped his work agenda. 
 He said credit and land supply policies should be strictly implemented and 
efforts must be made to limit the growth of energy-consuming and polluting 
industries.
 The National Bureau of Statistics and the National Development and Reform 
Commission (NDRC) will publish half-year data on China's economic and social 
development this week.
 The State Information Centre, a research organization affiliated to National 
Development and Reform Commission, suggested an interest rate hike in the second 
half of this year and higher reserve requirements for commercial banks. 
 "All possibilities will become reality," said Lin Yueqin, 
researcher with Economics Research Institute under Chinese Academy of Social 
Sciences, anticipating change after the State Council holds its half-year 
economic meeting this month. 
   
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