1/13/07

Outlook for China's economy

China's economy will continue to grow at around 9.5 percent in 2007, with fixed asset investment up 20 percent on 2006.

China will maintain a prudent monetary policy in 2007, said central bank governor Zhou Xiaochuan in his New Year address.

The exchange rate of Renminbi, the Chinese currency, is expected to appreciate by some five percent to one U.S. dollar for 7.44 yuan.

The growth of China's exports is expected to show a substantive decline in 2007, with an annual growth rate that could be well under 20 percent.

China will face rising inflation pressures in 2007, with the consumer price index (CPI) expected to possibly reach 2.5 percent.

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