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China’s GDP to slack to 9.4% in 2008


2008-11-03

According to a Chinese credit rating agency, China Chengxin International Credit Rating Co. (CCXI)’s report, China's gross domestic product (GDP) growth is estimated to slowdown to 9.4 percent in 2008 from 11.4 percent in 2007.
 
This is largely due to declining exports while domestic consumption will take a longer time to play a significant role. Both factors will have an impact on Chinese national economy in a short term. The fundamentals of the economy remain sound.
 
On the other hand, according to a spokesperson from China’s National Development and Reform Commission Economic Research Institute, it is still possible for China to gain 10% of GDP growth this year in view of the fact that Chinese economy is undergoing a cyclical adjustment phase, where the effect would be seen in 2009 and 2010.
 
Source: China Daily, Xinhua


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