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KUALA LUMPUR: The Middle Kingdom’s economy is still expected to enjoy growth of 10.7% annually in 2Q, slowing from a surge of 11.9% in the first three months of 2010, according to a government report, said the ShanghaiDaily.com on May 10.
The latest report by the State Information Centre, a unit under the National Development and Reform Commission, said last week that with robust domestic demand, China's economy will still expand rapidly in the April-June quarter, but the pace will slow from the peak growth in 1Q owing to a smaller rise in investment. The report also reiterated that the economy is not overheated.
"China has recovered solidly from the global financial crisis. The 1Q gross domestic product climbed to a record 11.9% but it is mainly due to a low comparative base last year," the report said. "Excluding the low-base effect, the growth is still within a range of reasonable expansion, and the economy is not overheated as some analysts claimed."
Meanwhile, retail sales will continue to get a boost from the "old for new" programme (which encourages consumers to trade in their used appliances), growing income and the World Expo 2010 Shanghai, the report said. Retail sales may rise 19% in 2Q, an increase from the 17.9% in 1Q, the report said.
Investment, however, will expand at a slower pace after Beijing tightened credit to avoid overheating the economy and prevent a possible asset bubble. Urban fixed-asset investment is expected to gain 24.5% in 2Q, compared with the 25.6% rise between January and March.
Exports may climb 25% in 2Q, while imports could surge 35%.
The latest report by the State Information Centre, a unit under the National Development and Reform Commission, said last week that with robust domestic demand, China's economy will still expand rapidly in the April-June quarter, but the pace will slow from the peak growth in 1Q owing to a smaller rise in investment. The report also reiterated that the economy is not overheated.
"China has recovered solidly from the global financial crisis. The 1Q gross domestic product climbed to a record 11.9% but it is mainly due to a low comparative base last year," the report said. "Excluding the low-base effect, the growth is still within a range of reasonable expansion, and the economy is not overheated as some analysts claimed."
Meanwhile, retail sales will continue to get a boost from the "old for new" programme (which encourages consumers to trade in their used appliances), growing income and the World Expo 2010 Shanghai, the report said. Retail sales may rise 19% in 2Q, an increase from the 17.9% in 1Q, the report said.
Investment, however, will expand at a slower pace after Beijing tightened credit to avoid overheating the economy and prevent a possible asset bubble. Urban fixed-asset investment is expected to gain 24.5% in 2Q, compared with the 25.6% rise between January and March.
Exports may climb 25% in 2Q, while imports could surge 35%.
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