IMF puts China's growth at 9.5% in 2011

Updated: 2011-09-21 09:40


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The International Monetary Fund (IMF)said on Sept 21 that China's economic growth was expected to remain robust at 9.5 percent this year after growing 10.3 percent in 2010.

Investment growth had decelerated with the unwinding of the country's fiscal stimulus, but it remained the principal contributor to growth, said the IMF in its latest World Economic Outlook (WEO) report.

Although inflationary pressure persisted, property price inflation and credit growth had softened from recent record levels due to efforts to withdraw credit stimulus, the report said.

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"Global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing."

These efforts included administrative limits on credit growth, higher interest rates and tighter reserve requirements, said the report, adding that China also set loan-to-value limits in mortgage credit and restrictions on multiple home purchases to rein in property prices.

The Fund also predicted China's output would grow 9.0 percent in 2012.

Asia-wide, it said economic activities remained solid but moderate in the first half of 2011 owing to a temporary disruption in supply chains after the Japanese earthquake and ensuing tsunami, especially in the auto and electronics sectors.

The region is expected to see a growth rate of 6.2 percent in 2011 and 6.6 percent in 2012, according to the report.

China would continue to outpace other economies but the average economic growth of 9.0 to 9.5 percent during 2011-2012 was less than the average of about 10.5 percent during 2000-2007, as ongoing policy tightening and a smaller contribution from net external demand moderated activity, the IMF said.