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China economy to grow 10pc this year

AN OFFICIAL think tank has forecast China’s GDP will expand around 10 per cent in 2010, driven by investment and domestic consumption, the official Xinhua agency reported yesterday.

Strong first-quarter growth of 11 per cent will slow slightly for the rest of the year, with the pace of expansion dipping just below 10 per cent in the second half, the Center for Forecasting Science at the Chinese Academy of Sciences said in the report, which was issued at the weekend. Growth in the third and fourth quarters will be 9.5 per cent and 9.8 per cent respectively, it said.

Foreign trade will rebound as the global economy improves, but overall net exports will be a drag on growth, bringing GDP expansion down by around 0.5 percentage points, the report said.

Exports will rise 16.6 per cent and imports by 18.9 per cent, with the overall value of foreign trade up 17.6 per cent.

The government’s economic stimulus plan, which aims to bolster the Chinese economy amid the economic slowdown, will continue to drive investment, but growth will slow to 25 per cent from 30.1 per cent in 2009, the report said.