Official: Economic growth to slow in 2012

A government think tank predicts the Chinese economy to grow 8.5% in 2012, state media reported, down from an expected growth rate of 9.2% in 2011. Investment in China is expected to grow 20% next year, said Lu Zhongyuan, deputy director of the Development Research Center of the State Council. Domestic consumption is forecasted to accelerate in 2012 with an improved employment situation and exports are expected to slow, he said. Investment, consumption and exports are seen as the primary factors in economic growth. Next year’s annual consumer price index (CPI) is expected to be 4.5%. Slowing growth is “reasonable and acceptable” as China shifts toward more sustainable development, Lu said.