The Chinese economy is expected to race ahead at around 10% average growth this year, the central bank said May 25, as regulators called for a clampdown on credit to the heated real estate sector. The government's official target for national gross domestic product (GDP) growth in 2006 is a modest 8%, but China's economy posted a 10.3% expansion in the first quarter.
The report also warned that overcapacity could impact industries this year, highlighting continued concerns in Beijing about overinvestment and the risk of sector-specific deflationary scenarios.
Copyright Agence France-Presse, 2006
