China 2006 GDP Growth Forecast At 10%

May 25, 2006

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.

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2025. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.