EU predicts China growth of 7.7%
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E-mail China.org.cn, November 8, 2012
The European Union has predicted that China will reach 7.7 percent of economic growth in 2012, a slowdown from 9.2 percent last year and forecasted a similar growth rate for 2013 and 2014.
The figures are from the EU's autumn report on economic growth with detailed analysis on economic situation in EU and its member states. China, Japan and US are also briefly mentioned in the report.
The report said China's economic slowdown was faster than expected, the growth rate will be 7.7 percent in 2013 and snails to 7.8 percent in 2014.
The warning report was released shortly after US announced its general election and China started its process of leadership transition.
Given the weakness of external demand, and likely, sluggish demand from the domestic private sector, EU said the current outlook for China largely hinges on whether reported measures to accelerate public investment projects and some targeted fiscal measures directed towards consumers, will prove sufficient to generate a substantial improvement in domestic prospects.
Topping the agenda for the new leadership will be the country's economic transformation from one overdependent on investment to one more consumption-driven.
China's investment rate is about 50 percent, which is very high compared with other countries, although the growth in consumption has gained some momentum this year.
In the first three quarters, China's final consumption expenditures accounted for about 55 percent of its gross domestic product, indicating for the first time in 10 years that the contribution of consumption surpassed that of the investment.
China's residential consumption demand, which was 16 trillion yuan ($2.56 trillion) in 2011, is expected to climb to about 30 trillion yuan in 2016 and up to 50 trillion yuan by 2022.
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