China economic growth to rebound
Play that music: A woman walks next to a sculpture at a commercial area in China. Picture: AFP
Sunday, July 27, 2008
CHINA'S economic growth will pick up slightly in the second half of the year due to strong domestic investment, the Bank of Communications said in a report released yesterday.
"We believe China's economic growth rate will rebound to a level around 11 per cent in the fourth quarter," the No 5 Chinese lender said.
Full-year gross domestic product (GDP) is expected to rise 10.6 per cent in 2008, from the annual 10.4 per cent in the first half, the report said.
"Fixed-asset investment will gain steam in the second half of this year due to massive reconstruction needs," Lian Ping, the chief economist of the Bank of Communications, said.
Over the next three years, at least 1 trillion yuan (US$147 billion) of investment would be needed for rebuilding after the devastating Sichuan earthquake in May, he said.
Lain said the investment rebound would offset a slight weakening in exports in the coming months.
The bank's view was in line with comments made on Friday by Su Ning, a vice central bank governor. Su said China would have robust economic growth in the second half.
China's Politburo said on Friday that maintaining stable economic growth and fighting inflation will be the priorities for the government in the second half of this year.
According to the bank's report, China's full-year inflation would stablise at 6.8 per cent. In terms of the yuan's exchange rate , it said the yuan would slow its appreciation against the US dollar in coming months.
"We expect the yuan to rise three to four per cent against the dollar in the second half," it said, from about a 6.5 per cent rise in the first half.
Another study said fixed-asset investment growth in Beijing could slow sharply in the second half, reflecting government restrictions on building projects during the Olympics, Xinhua reported yesterday. The study forecast that the city's fixed-asset investment growth would slow to 10 per cent in the third quarter from a year ago, down 14.8 per cent from the first quarter.
Reuters
"We believe China's economic growth rate will rebound to a level around 11 per cent in the fourth quarter," the No 5 Chinese lender said.
Full-year gross domestic product (GDP) is expected to rise 10.6 per cent in 2008, from the annual 10.4 per cent in the first half, the report said.
"Fixed-asset investment will gain steam in the second half of this year due to massive reconstruction needs," Lian Ping, the chief economist of the Bank of Communications, said.
Over the next three years, at least 1 trillion yuan (US$147 billion) of investment would be needed for rebuilding after the devastating Sichuan earthquake in May, he said.
Lain said the investment rebound would offset a slight weakening in exports in the coming months.
The bank's view was in line with comments made on Friday by Su Ning, a vice central bank governor. Su said China would have robust economic growth in the second half.
China's Politburo said on Friday that maintaining stable economic growth and fighting inflation will be the priorities for the government in the second half of this year.
According to the bank's report, China's full-year inflation would stablise at 6.8 per cent. In terms of the yuan's exchange rate , it said the yuan would slow its appreciation against the US dollar in coming months.
"We expect the yuan to rise three to four per cent against the dollar in the second half," it said, from about a 6.5 per cent rise in the first half.
Another study said fixed-asset investment growth in Beijing could slow sharply in the second half, reflecting government restrictions on building projects during the Olympics, Xinhua reported yesterday. The study forecast that the city's fixed-asset investment growth would slow to 10 per cent in the third quarter from a year ago, down 14.8 per cent from the first quarter.
Reuters
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