China's economic growth is estimated to be 10.5 percent in 2008,
slightly lower than in 2007, a report released by Bank of China
said on Thursday.
Inflation pressures would still exist in 2008, but would
gradually flatten over the year, said the report.
The annual consumer price index would stay somewhere between 4.5
percent, down from the figure in 2007, which is estimated at 4.7
percent.
Imports and exports would continue to grow rapidly, but the fast
pace in exports would slow. With a stable rise in imports, the
growth in trade surplus would gradually narrow.
The Chinese yuan was expected to appreciate faster against the
U.S. dollar in the first half of the year compared with the latter
half, the report said.
It warned the appreciation would have more negative impacts on
the profits of export-oriented companies, and suggested the
government should be careful with exchange rate policies to avoid a
cooling effect on the domestic economy of a possible decline in
exports.
The growth of bank loans would be controlled by the newly
adopted tightening monetary policy, and absorbing excess liquidity
would still top the government agenda with regard to monetary
policy.
(Xinhua News Agency January 11, 2008)
