China's GDP expected to grow 10.5 per cent in 2006
China's gross domestic product (GDP) is expected to rise by 10.5 per cent in 2006 over the previous year.india Updated: Jan 01, 2007 19:15 IST
China's gross domestic product (GDP) is expected to rise by 10.5 per cent in 2006 over the previous year, slightly lower than the first three quarters, the Communist giant's chief economist Yao Jingyuan said.
China's economy has maintained a "fast, steady and high quality growth" this year, but efforts needed to be strengthened as bank loans were still expanding at a rapid pace, fixed assets investment remained high and the trade imbalance lingered, Yao, chief economist of the National Bureau of Statistics said.
In the first nine months the Chinese economy experienced rapid growth, with the GDP up 10.7 per cent, the industrial sector up 13 per cent, retail sales up 13.5 per cent and the foreign trade volume up 24.3 per cent over the same period last year.
According to Yao, the consumer price index (CPI) rose a moderate 1.3 per cent, 0.7 of a percentage point lower than the rise of the same period last year.
He said the declines of CPI, industrial production price index, and enterprise material price index indicates China's economy is operating in a stable and health way.
Meanwhile, the exchange rate of Renminbi, the Chinese currency, is expected to appreciate by some five per cent to one US Dollar for 7.44 yuan, the state media reported on Monday.
The pace of RMB appreciation would be faster in the first half of 2007 than in the second half, according to Xinhua Economic Analysis Report, which is compiled by a team of over 80 economic analysts.
The latest issue of the report reviewed the country's 10 key indices in the economic and financial sectors and made projections on possible changes in the coming year.