Banking News
- Deutsche Bank lifts China's GDP growth prediction for 2007 and 2008
Date: 24-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 22 (Xinhua) -- Deutsche Bank lifts China's GDP growth prediction from the previous 10.7 percent and 9.7 percent to 11.4 percent and 10.2 percent in 2007 and 2008 respectively.
Deutsche Bank chief economist in China Ma Jun said they lifted the figures because China's GDP growth in the second quarter reached 11.9 percent, 0.7 percentage points than their previous prediction.
Moreover, China's National Bureau of Statistics had changed the GDP growth rate for 2006 from 10.7 percent to 11 percent, implying China's potential growth rate was underestimated.
On the other hand, in the second quarter, China's fixed-asset investment growth rate, two percentage points higher than the corresponding period last year, might reach 25 percent in the second half of 2007, he said.
'We lifted the prediction for 2008 mildly from 9.7 percent to 10.2 percent because we are concerned about the U.S. economy,' Ma said.
Ma pointed out that if the U.S. economy slowed down, China's exports, particularly in furniture, electronic appliances and textile sectors, might decline.
He also forecasted industries driven by domestic demands, such as banking, cement, coal and retail business, will continue with their momentum.
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