China’s economy is likely to grow by 8.3% this year and 9% next year, according to the latest quarterly report from the Chinese Academy of Social Sciences (CASS), a leading government think tank. The academy said its projections were conditional on the global financial crisis not getting any worse and China avoiding major natural disasters, the South China Morning Post reported. The academy also predicts there will not be “marked inflation,” despite concerns that Beijing’s heavy stimulus spending will lead to rising prices. It expects a 3% increase in the consumer price index in 2010. The CASS growth projection is in line with those of most other public and private institutes, which have raised their forecasts recently on the back of China’s economic revival. Nevertheless, there are some concerns that the recovery – largely driven by credit-fueled investment – might not be sustainable.
You must log in to post a comment.