Economy
China's growth projected to be 10.5% in 2010, 9.6% in 2011: IMF
(Xinhua)
Updated: 2010-10-07 14:16
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WASHINGTON - China's growth is projected to average 10.5 percent in 2010 and 9.6 percent in 2011, driven by domestic demand, the International Monetary Fund (IMF) said in a report on Oct 6.
The Washington-based international lending agency made the projection for the annual fall meetings this weekend of the 187-nation IMF and its sister lending organization, the World Bank.
"The slight moderation in recent activity is expected to continue through 2011 in light of tighter quantitative limits on credit growth, measures to cool off the property market and limit bank exposure to this, and the planned unwinding of fiscal stimulus in 2011," the IMF said in its report.
The report said this year's sustained growth in retail sales and industrial production confirms that private sector activity has advanced beyond the lift from government stimulus.
"On average over 2010-11, private domestic demand is poised to contribute two-thirds of near term growth, and government activity about one third, whereas the contribution from net exports will be close to zero," the report said.
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The report said China's increasingly wide trading network is driving growth in numerous economies, especially commodity exporters.
The report said Asia's medium-term growth depends on the rebalancing of drivers of growth -- greater reliance should be put on domestic markets instead of foreign demand.
The report said such a rebalancing in China, the world's second largest economy, is critical to enhance the role of household consumption in domestic growth.
The report also recommended that China implement reforms to health care, education, and pension systems to enhance the social safety net.