China Watch Blog has learnt that the Asian Development Bank (ADB) has turned down its forecast on China’s inflation rate to 3.2 percent from the 3.6 percent forecasted in April.
According to a Shanghai Securities News report, the bank insists its forecast on China’s economic growth is right, saying China’s GDP would grow 9.6 percent year-on-year in 2010, and 9.1 percent year-on-year in 2011, the paper said.
China’s GDP growth rate would be around nine percent year-on-year in the third quarter of this year, and that in the fourth quarter would fall to eight percent, ADB said in the Asian Development Outlook (ADO) 2010.
ADB warned China’s economy may be confronted with slight difficulties next year, and the country is facing risks such as a sluggish overseas demand, the EU debt crisis, and the falling euro.
In the long run, sustainability in China’s economic growth would be affected if it does not change its economic structure soon, said Jong-Wha Lee, ADB’s chief Economist.
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