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Economists see China's Q3 GDP below 10%

By Chen Xia
0 CommentsPrint E-mail China.org.cn, October 11, 2010
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China's GDP growth rate will drop below 10 percent in Q3, according to the chief economists of 22 financial institutions. The average predicted figure is 9.38 percent.

The rise in food prices and the mid-autumn holiday will cause the CPI to hit a quarterly high in September. The figures for July and August were 3.3 percent and 3.5 percent respectively.

By contrast, the Producer Price Index is likely to register its fourth straight month of decline in September, with an expected figure of 4.2 percent, 0.1 percent lower than August.

According to the economists' estimates, investment figures will continue to fall. The growth of both imports and exports will slow substantially. Currency and credit growth, a major concern for the market, will also be lower than in August.

But despite the declining figures, the economists remain optimistic about the future and believe current economic policies will remain unchanged.

Monetary policy may be tightened slightly due to the inflation and long-running negative interest rates, but the current interest rate will be maintained.

China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.

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