Watch VideoPlay Video
Morgan Stanley says China's GDP growth this year will exceed 10 percent, while the CPI increase will be 3 percent.
It expects economic growth will slow to 10 percent in the third quarter, and to 9 percent or lower in the fourth quarter. This is due to the economic downturn in the developed world, further restrictions on the Chinese housing market, and the weakening effects of the government stimulus package. It says the key issue is whether the cooling economy will be maintained within an expected and manageable range.
Due to the lower inflation expectation, Morgan Stanley says China's central bank is less likely to increase the interest rate.
- Studio discussion: What does slowed GDP growth in Q2 sign for? 2010-07-16
- Commentator: China's GDP growth=solid recovery? 2010-07-15
- What's the message behind GDP figure 2010-07-15
- China's GDP grows at 11.1% in H1 2010-07-15