OECD raises China growth forecast

29 November 2006

The Organization for Economic Cooperation and Development (OECD) raised its annual growth forecast for China to 10.6% from 9.7% in its latest global economic outlook report, released Tuesday. The organization, which represents 30 industrialized countries, expects China's GDP growth to slow to 10.3% in 2007 - an earlier OECD report put it at 9.5% - before rebounding to 10.7% in 2008. Inflation for 2006 is projected to be 2.2%, down from an earlier prediction of 3.4%. The OECD believes inflation will come to 1.8% in 2007 and 2% in 2008. According to AP, the report also warned that China risks slowing growth too much if it imposes stricter lending controls. Official statistics show the Chinese economy grew 10.4% in the third quarter over the same period last year, down from 11.3% growth in the second quarter, its highest rate in a decade.