The central bank predicted in the third quarter monetary policy implementation report released on October 8 that China's GDP growth would be more than 11 percent in 2007, and the consumer price (CPI) growth would reach about 4.5 percent.
Previous data from the National Bureau of Statistics showed that September CPI rose by 6.2 percent, a slight decline from 6.5 percent compared with August. CPI rise accumulated to 4.1 percent in the first 9 months.
The report also believes that China's current economic growth momentum remains strong, national economy will continue to maintain steady and rapid development momentum in the coming period. Investment demand will keep a fairly rapid growth; consumer demand is expected to accelerate. Consumption will remain steady to strong for a certain time in future, but price increase is likely to produce some inhibition to actual consumption growth.
The report believes that the sub-prime in the US has increased global economy uncertainties, but global economy is likely to grow at a faster rate. Diversified development of China's trade to some extent also helps ease the influence caused by the slowdown of some regional economic growth. External demand is expected to remain relatively strong. For some coming period, China's trade surplus will remain at a high level, but growth rate is expected to gradually slow down.
According to statistics, in the inflation from January to September, 3.5 percentage points are caused by higher food price.
Fibre2fashion,. News Desk - China
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