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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4016)	12/31/2004 2:45:34 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China's economy to slow down in '05 December 31, 2004 11:25 IST The booming Chinese economy will register a much slower growth at 8.5 per cent in 2005 compared to 9.1 per cent in 2004 due to a possible slowdown in both investment and exports, the state media reported on Friday. According to a forecast made by the state development and reform commission, the Communist nation's planning body, said that China's gross domestic product growth will drop back to 8.5 per cent next year following a 9.1 per cent expansion this year due to a slow-down expected for both investment and exports. The report sets the investment increase at around 18 per cent, retailing sales of consumer products at about 9.5 per cent, exports at 15 per cent, consumer price index at three per cent and industries above the scale at 16 per cent. The commission has not seen any necessity of interest rate hike next year although the government will consolidate its control over investment, the People's Daily reported. The report explains that this is because the interest rate hike this year is, to a great extent, a result of a trade-off. But the actual inflation is not high this year and will not be high next year. In particular, investment and economy will continue to cool off. All of these have given no reason for interest rate hike, it said. But the report sees possibility of a cycle of interest rates increase in 2006 and 2007. The commission suggests prevention of the tendency of the real estate sector getting over-heated and a sharp fall in exports. The state bureau of statistics gives similar estimation on economic growth of next year. Its forecast for CPI next year is four per cent. It also believes the fiscal revenue will go up only moderately next year at 14 per cent, compared with around 21 per cent in 2004. inhome.rediff.com