Macroeconomic Forecast China

December 2005 | Macroeconomic Forecasts

We are forecasting China’s economy to grow by 9.3% in 2005. Growth is set to slow in 2006 to 8% as government attempts to control fixed asset investment – the main driver of the economy over the past few years – begin to take effect. To make economic growth more broad-balanced and sustainable, the government needs to do more to increase consumption, which has been lagging behind investment and net exports over the past few years.

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