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China sees economy growing 9.2 pct in 2005
(Reuters)
Updated: 2005-09-26 09:48

China's central bank expects the economy to grow 9.2 percent this year and expand 8.7 percent in the first half of 2006, the Shanghai Securities News said on Monday.

The People's Bank of China also forecast in a recent research report that consumer prices would rise 2.0 percent in 2005 and 2.1 percent in the first half of 2006, the newspaper said.

The annualised figures indicate a slowing economy as China's gross domestic product grew 9.5 percent in the first half of this year.

"We must pay great attention to the impact of surging oil prices, but must also prevent a continued fall in overall domestic prices," the newspaper quoted the report as saying.

China's consumer prices had fallen since March due mainly to sharply slowing growth in food prices, weakening consumer demand and overcapacity of products, in response to Beijing's efforts to cool the economy since early last year, the report said.

Economists have warned of a possible slowdown of China's economy after Beijing's strong economic-cooling steps, with some warning the country could even see deflation by 2008.



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