China's economic growth is set to slow to 9.5 percent next year, said
the State Information Centre, a research institute under the National
Development and Reform Commission, the country's top economic planner.
The centre, which made the forecast in a report published by the
official China Securities Journal on Monday, has forecast China's gross
domestic product will rise 10.5 percent in 2006.
China's GDP has grown 10 percent or more every year since 2003.
The centre cited both domestic and global reasons.
"The world economy is likely to grow steadily or slow slightly, with
average global oil prices slipping from 2006. Domestic cooling steps will
be implemented and further fine tuning is expected to continue," it said.
"Under these conditions, GDP will increase by 9.5 percent, one
percentage point slower than in 2006, with a potential growth range
between 8 percent and 10 percent," it said.
In 2007, growth in fixed asset investment will drop 6.5 percentage
points to 20 percent, while the consumer price index (CPI) is set to rise
about 2 percent, the centre predicted.
Growth in exports will slow by nearly 10 percentage points to 15
percent while import growth will fall by 7.5 percentage points to 14
percent, it said. China's trade surplus is projected at around $176.9
billion in 2007.