China boom may be longest, least volatile

China's economic boom, likely to continue for another two years according to a Goldman Sachs report, could become the longest and least volatile in history. Quoting a note by Goldman Sachs economist Liang Hong, China Daily said the country's economy may grow 9.8% in 2007 and 10% in 2008 but the expansion will put only "limited" pressure on inflation to quicken. "The economy has become much more flexible and market oriented compared with the last cyclical boom more than 10 years ago," Liang said. According to the state-owned newspaper, the size of the economy could grow to US$3 trillion by 2008 and overtake Germany to become the third largest in the world.