China's economy is expected to grow 9.4 per cent this year and plummet to 8.9 per cent next year, a government think-tank has forecast.
China's economic growth this year should be higher than last year's 9.1 per cent, as the economy has stepped into an upward development period, a senior economist with the prestigious Chinese Academy of Social Sciences, Wang Tongsan was quoted as saying by China Daily on Monday.
"If there are no major breaking events internationally, or severe natural disasters or other big domestic issues, the country's economy is capable of maintaining a growth rate of more than 8 per cent next year, due to the country's macro-control measures," he said.
China's economy grew a year-on-year 9.6 per cent during the second quarter of this year, slowing from the 9.8 per cent growth in the first quarter, after the government announced it had achieved initial results in its macro-control measures to curb over-investment.
"The overall performance of the economy was good," Wang said.
Energy and transportation bottlenecks, possible rebound in fixed asset investments and the fast decline in money supply and loans are still troubling, he said.
Niu Li, a senior economist at the State Information Centre, said the government should also be alert about further price rise, as price pressures have already become very large.
"While food prices remain at a high level, international oil prices are rising rapidly," he said. The price rise would have a certain negative impact on ordinary people's lives, Niu said.
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