Economic Trend News
- Economy set to grow 11.2 percent: IMF
Date: 27-Jul-2007 Sources: (Shenzhen Daily)
CHINA'S economy is set to expand 11.2 percent this year and become the largest driver of world growth, the International Monetary Fund (IMF) said Thursday as part of a revised global outlook.
The IMF raised its 2007 forecast a hefty 1.2 percentage points from its World Economic Outlook (WEO) published in April.
The pace of growth in China was expected to moderate to 10.5 percent in 2008, but higher by 1 point than the April forecast, the IMF said.
'For some time China has been the largest contributor to global growth measured in purchasing power parity,'Charles Collyns, the IMF deputy director of research, said at a news conference.
On purchasing power parity terms, discounting exchange-rate differences, China represents 15 percent of the global economy, he said.
On market-exchange rate terms, 'China is only 5 percent of the global economy and therefore its contribution to global growth is substantially less,'he said.
'This year for the very first time, with its very strong growth expected, and with the growth slowdown in the United States, China will be contributing the largest part to the increase in the global growth measured at market exchange rates as well as purchasing parity terms,'he said.
China is expected to provide one quarter of the annual growth rate of the world economy this year, and 'if you add together Russia and India as well, you get over half of global growth coming from the emerging market countries,'he said.
The red-hot Chinese economy was a leading factor in the IMF's improved outlook on the world economy. The Washington-based financial institution raised its 2007 and 2008 growth forecasts for the global economy to 5.2 percent, from 4.9 percent in April.
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