China’s economy will likely make a soft landing this year.
It is expected to grow at a reasonable rate despite persistent global economic uncertainties, Standards & Poor’s (S&P) said Friday.
“We expect the Chinese economy to fall further in 2012 to about 8 percent — our base-case scenario for our current ratings,” said Terry Chan, credit analyst at S&P.
China’s economy expanded 9.2 percent in 2011 from a year earlier, down from 10.3 percent on-year growth in 2010 amid weakening demand from debt crisis-stricken Europe and the U.S., where economic recovery has been slow.
S&P, however, warned the debt crisis in Europe and the weak U.S. recovery could continue to reduce demand and cause a drag on China’s export-dependent economy.
“We also project that there is a one-in-four chance of a medium landing of 7 percent growth to occur, and a one-in-ten likelihood of a hard landing of 5 percent GDP expansion,” Chan said.