China Economists Mull Overheating Dangers

21 April 2006

   BEIJING - China's economic growth surged 10.2% in the first quarter, strengthening the case for measures to prevent overheating.
   The National Bureau of Statistics expressed concern at excessively loose credit and unbalanced growth, but said the overall outlook for the economy remained positive.
   Sebastian Barbe, a senior economist based in Hong Kong, believes monetary tightening will happen in part by letting the yuan rise further, thereby dampening economic activity by applying the brakes to exports.