Economic growth could reach 9.5% in 2006, beating government targets and suggesting more should be done to curb investment, Vice-Finance Minister Li Yong said. Local government investment in building factories that create jobs and bring in tax revenue must be controlled to avoid excess production capacity and falling prices, Li told the Asian Development Bank's annual meeting. Investment in factories and roads in urban areas was up 29.8% year-on-year in the first quarter. The central bank may raise its key lending rate once more after last month's increase – the first since October 2004.
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