China’s economic growth will likely slow to 9 percent in 2011 from this year’s estimate of 10 percent due to the rollback of stimulus measures to weather a global downturn, a state-run think tank said Wednesday.
“China’s economy will show lower economic growth next year,” Yu Bin, director of macroeconomic research at the State Council Development Research Center, said in a press conference. “The economy will hit bottom in the first quarter of 2011 and steadily rise starting from the second quarter.”
He stressed next year’s 9 percent growth target is in the acceptable range for policymakers, adding that active fiscal policies will keep growth stable.
China’s consumer price index will rise to 4 percent next year, a full percentage point higher than this year’s target of 3 percent, the researcher said.
The Chinese government has started to move toward tightening its monetary policy in order to fight the country’s overheated asset markets and inflation risks.
Since Oct. 20, Beijing has raised interest rates once and adjusted bank reserve ratios three times, while at the same time tightening capital control and property purchases by foreign individuals and businesses.