Source: CCTV.com

07-27-2008 14:36

China's economic growth will pick up slightly in the second half of this year due to strong domestic investment. That's according to a report released by the Bank of Communications on Saturday. And this is in line with the central bank's earlier comments.

China's Bank of Communications said in the report that China's economic growth rate will rebound to a level around 11 percent in the fourth quarter of this year. And full-year gross domestic product is expected to rise 10.6 percent, compared with a 10.4-percent-rise in the first half.

The No. 5 Chinese lender said fixed-asset investment will gain steam in the second half of this year, due to massive reconstruction needs. It predicted over the next three years, at least 1 trillion yuan of investment will be needed for rebuilding after the devastating Sichuan earthquake in May. In addition, the investment rebound will offset a slight weakening in exports in the coming months.

The bank's view stood in line with comments by the central bank on Friday, which said China will have robust economic growth in the second half of this year.

The Bank of Communications said in the report that China's full-year inflation will stabilize at 6.8 percent. While in terms of the yuan's exchange rate, the bank said the Chinese currency will slow its appreciation against the US dollar in coming months. It also forecast the yuan to rise 3 to 4 percent against the greenback in the second half, compared with a 6.5-percent-increase in the first half.

 

Editor:Liu Fang