WB: China's economy is heading for a 'soft landing'

The World Bank (WB) report released on Wednesday says that although there is no lack of conflicting information about recent economic data, generally speaking, however, China's economic growth rate is being slowed down to a speed of a more sustainable and balanced development. World Bank predicted that China's economic growth would drop to 8.3 percent this year, and to around 7.5 percent next year. The increase speed of China's economy last year was 9.5 percent, the fastest growth since 1996.

Chief Economist Hofman with World Bank's Beijing Representative Office made a similar judgment earlier at the Bo'ao Forum for Asia. He said that in the past year, the Chinese government adopted a series of administrative and economic macro-control means, the result of which have gradually come to light. He said that no inflation has appeared in China at the moment, prices for many commodities including grain are kept under very effective control. The Chinese government could adopt a host of measures to further control domestic demands.

World Bank also suggested that if China could adopt a more flexible foreign exchange policy, it would be better able to control the circulation of capital and reach the domestic economic targets by making more effective use of its monetary policy.

By People's Daily Online