Chinese Economy to Grow 11.3% in 07, Predicts World Bank

13 September 2007

WASHINGTON, DC: The US-headquartered World Bank on Wednesday issued its quarterly report on China, forecasting a massive 11.3% increase in GDP this year.

The full-year prediction rests on the communist autocracy's 11.5% year-on-year surge in H1. In its earlier prognostication in May, the bank upped the expected rise from 9.6% to 10.4%.

China's economic growth pattern remains unchanged, as continued strong external trade and an investment-driven recovery in domestic demand remain major factors behind the rapid growth.

However, the nation's National Bureau of Statistics this week predicted that the economy will slow to a meager 10.8% rate of growth in 2008 - a figure most western nations would kill for.

But there is one small cloud on the economic horizon within the People's Paradise - price inflation.

According to the NBS, the consumer price index rose to an eleven-year high of 3.9% in the first eight months of 2007, thirty-three percentage points above the government's annual target of 3%.

Data sourced from People's Daily Online and Xinhua (China); additional content by WARC staff