China's economy to grow by 10.5% say forecasters

2 October 2006

China's central bank has forecast that the country's economy will grow by 10.5 per cent this year, according to state media reports.

The People's Bank of China also expects further growth of 9.5 per cent during the first-half of 2007, the official Xinhua news agency said.

The growth forecast for 2006 is slightly higher than the prediction made last week by China's National Bureau of Statistics, which said it anticipated growth of ten per cent for the year.

While anticipating further growth in domestic spending, China's central bank reportedly expects the country's rate of domestic investment and export levels to fall gradually as a result of a slowdown in the global economy and increasing "trade frictions".

The United States has previously accused China of undervaluing its currency to promote export growth, amidst continuing efforts by the Chinese government to prevent its burgeoning economy from overheating.

The Asian economy grew by 10.2 per cent in 2005 and by 10.9 per cent in during the first half of 2006.

Despite China's booming economy, the country's central bank also expects inflation rates to remain low, at 1.5 per cent for 2006 and 1.8 per cent for the first-half of 2007.

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