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CHINA / National

Central bank sees GDP growing 8.9% in 2006
(Reuters)
Updated: 2006-03-27 08:43

China's central bank said on Monday it expects the country's gross domestic product (GDP) growth to slow to 8.9 percent in 2006 from 2005 and consumer prices (CPI) to rise 2.0 percent.

For the four quarters of 2006, the People's Bank of China expected annual GDP growth rates of 9.2, 9.0, 8.9 and 8.7 percent, its research bureau said in a report published in the official China Securities Journal.

The breakdown for China's CPI growth for the four quarters of 2006 would be 1.5, 2.1, 2.1, and 2.0 percent from a year earlier, it said.

China's GDP grew 9.9 percent in 2005 and 10.1 percent in 2004.

"In general, our country's GDP growth will gradually trend lower in future, but will still maintain a high level," the report said.

The central bank added its forecasts were based on a few pre-conditions, including that the global economy would grow 4.3 percent in 2006 and China's interest rates were kept at present levels.

China's benchmark one-year yuan deposit rate currently stands at 2.25 percent while the one-year lending rate is at 5.58 percent.

"We also see no major fluctuations for consumer prices in future," the central bank said.

The CPI was likely to grow 1.8 percent in the first half of 2006 from a year earlier and 2.0 percent for all 2006, compared with 1.8 percent in 2005 and 3.9 percent in 2004, it said.

 
 

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