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Chinese economy likely to grow by 8.3% in 2012

Chinese economy likely to grow by 8.3% in 2012

Updated: 2012-03-14 18:56

(Xinhua)

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BEIJING - China's economic growth rate is projected to slow further to 8.3 percent in 2012 due to uncertainties in the global economy, Standard & Poor (S&P) said Wednesday.

The growth rate, though lower than the 9.2-percent recorded in 2011, will still allow China to stand out among the world's major economies, the rating agency said.

The rate is also higher than the 7.5-percent official target set during the annual meeting of the National People's Congress, China's top legislature, earlier the month.

China's GDP experienced a slowdown last year, with weak external demand for exports and tightening measures to curb inflation weighing on growth. The GDP grew by 9.2 percent, compared to 10.4 percent in 2010.

Local authorities' focus on boosting the GDP and increasing government support for small- and mid-sized businesses will provide growth momentum, S&P said.

The Chinese government is also likely to increase fiscal spending and cut taxes to boost household consumption, it added.

However, potentially adverse developments in the eurozone and Middle East could threaten China's economic growth, according to the agency.

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