MercoPress. South Atlantic News Agency

“Express” China forecasted to keep growing above 10%

China's Academy of Social Sciences forecasts that China's economy will expand 10.5% this year and 10.1% in 2007, reports the Chinese agency Xinhua.

The slower growth next year is attributed to the effects of current policies to cool the Chinese economy and limit credit support particularly in strategic overheated sectors.

China's trade surplus is forecasted to reach 158 billion US dollars in 2006, which should drop to 123 billion next year.

The huge surpluses have also contributed to the impressive accumulation of international reserves in the Central Bank which this month are expected to hit a record trillion US dollars.

Regarding investment in fixed assets, one of the main objectives of the cooling policies of Beijing authorities is expected to be in the range of 24.8%, below the 30% of the seven first months of this year and which the Social Sciences Academy estimates will drop to 20.4% in 2007.

The Academy, which has an advisory role to the Chinese government recommends that measures to contain growth in 2007 remain effective, mainly the increase in interest rates and credit restriction.