CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Analysts: Q2 growth likely to slow to 10.6%

07-14-2010 16:31 BJT

BEIJING - China's economic growth is likely to slow to 10.6 percent in the second quarter as the effects of the government's massive stimulus package weaken, analysts are forecasting.

Pei Changhong, head of the Institute of Finance and Trade Economics of the Chinese Academy of Social Sciences, expected China's second-quarter growth to slow to 10.6 percent and the annual growth to reach 10.5 percent.

China, the world's third largest economy, posted economic growth of 11.9 percent in the first quarter, which analysts said was mainly supported by the country's massive economic stimulus package.

The country's GDP growth in the fourth quarter this year and the first quarter of 2011 might slow to around 9 percent, said Zhu Jianfang, chief macro economist with Citic Securities.

Zhu ruled out the possibility of a double dip for China's economy and said growth would show a U-shaped curve.

The latest economic indicator pointing to a slowdown in China's growth was the Purchasing Managers' Index for the manufacturing sector, which slowed for two consecutive months. The index stood at 52.1 percent in June, down 1.8 percentage points from May.

Growth in fixed assets investment, one of the major engines boosting China's growth, would witness an obvious deceleration in the third quarter this year, said Xing Weiwei, an analyst with the Jianyin Investment Securities.

Xing expected fixed assets investment to climb about 20 percent year on year during the July-September period, compared with an increase of 25.6 percent in the first quarter.

China unveiled a 4-trillion-yuan ($589.97 billion) economic stimulus package in late 2008 to counter the adverse impacts of global financial crisis. The spending was planned to the end of 2010.

The National Bureau of Statistics is scheduled to release a range of economic data on Thursday, including second-quarter gross domestic product growth, the consumer price index and fixed assets investment.

Editor:Xiong Qu |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program