World Bank Forecasts Chinese Economic Growth At 11.3 %
Source: Australian Headline News
Beijing, China (AHN) – According to the World Bank’s China Quarterly Update released Wednesday, economic growth in China is growing at a rapid pace and the trade surplus continues to widen.
The Bank also noted that despite the fact that consumer price inflation is at a decade high, it is largely attributed to food prices.
According to the report, the recent global financial market turmoil could possibly have an adverse effect on the Chinese economy, but nonetheless the nation is well equipped to absorb the impact.
Due to the large weight on exports in China’s economy, some key markets in China may be affected. On the other hand, a moderation of some sort would quell efforts by policymakers to keep the economy from overheating.
Lousi Kuijs, senior economist for China and the main author of the report said,
“China is well-placed to deal with the possible impact of slower global growth.” Adding, “A moderate global slowdown would actually mitigate concerns of policymakers on overall growth, inflation, and the trade surplus, while China’s strong macroeconomic position provides room to adjust the domestic policy stance if necessary.”
The World Bank has raised its forecast for China’s economic growth by 1 percent to a break-neck paced of 11.3 percent, revising a previous figure of 10.4 percent.
So far, strong investments and booming exports have been the main push behind the world’s most rapidly growing economy. However, the Bank reiterated that even if demand for exports subside, consumer spending will buoy the Chinese economy.
