‘Chinese economy to slow down to 9.6% this year’

Chinese economy is expected to slowdown to grow around 9.6% this year from 10.3% last year, due to inflation pressures and tightening of monetary policy, according to a report released by the Asian Development Bank (ADB) on Wednesday.

Chinese economy is expected to slowdown to grow around 9.6% this year from 10.3% last year, due to inflation pressures and tightening of monetary policy, according to a report released by the Asian Development Bank (ADB) on Wednesday.

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China’s economy is expected to grow 9.6% in 2011 as fixed asset investment remains a key driver, the Bank said.

With inflation pressures building and tightened monetary policy, China's gross domestic product (GDP) growth was forecast to be moderate this year, compared with a growth of 10.3% in 2010, the ADB said in its 2011 Asian Development Outlook, which expected a growth of 9.2% in China in 2012.

China's inflation rate, which averaged 3.3% in 2010, will pick up to 4.6% in 2011, lifted by abundant liquidity and higher food and commodities prices, it said, estimating that the inflation will ease back to 4.2% in 2012 as commodity prices level off.