Chinese economy expected to keep accelerating

A systems scientist has estimated that the Chinese economy will continue to accelerate in 2006.

The Chinese economy has been maintaining a rising momentum and low inflation rate since last March, said Wang Shouyang, director the Forecasting Science Center of the Chinese Academy of Sciences (CAS).

"The growth rate will be more accelerated in the second half of 2006," Wang said.

Using different methodologies and analytical tools, Wang predicts that the Chinese economy will enjoy a healthy growth in 2006, with neither inflation or deflation, as long as investment is controlled, a balance between imports and exports is maintained, and over-production is limited.

China developed its economy healthily in 2005, with a gross domestic product of more than 18 trillion yuan (2.22 trillion U.S. dollars), according to the National Bureau of Statistics. The growth rate reached 9.9 percent after deducting price increases.

Wang and his research team advised state decision makers to continue adopting stable fiscal and monetary policies, further encouraging domestic consumption and reducing over-production.

Source: Xinhua