China growth ‘to slow slightly’
Central bank says growth will dip to 9.8% as Beijing tries to rein in investment.
According to the bank’s report, published on the website of the official China Securities Journal, China’s economic growth for 2006 was expected to be 10.5 per cent, in line with earlier official forecasts.
Beijing has raised interest rates twice this year, tightened controls on credit and imposed curbs on new construction.
But despite the controls, the government says investment in factories and other fixed assets in the first 11 months of this year soared by 26.6 per cent over the same period last year.
Earlier this month Ma Kai, chairman of China’s main planning agency, the National Development and Reform Commission, said that the “relentless expansion has yet to be stopped”.
Government economic planners say next year Beijing would focus on trying to shift the basis of China’s economic growth from investment and exports to domestic consumption.