China's economy to slow to growth rate of 8 percent in 2006: The Economist

China's high-speed economy, the focus of the world, is expected to slow down in 2006, but will still maintain a growth rate of 8 percent, The Economist reported on Thursday.

The Economist, the weekly publication known for its original and incisive commentaries on international news and business, made the prediction in its Chinese language edition of "The World in 2006" released on Thursday.

The magazine forecasts that China's gross domestic product (GDP) will reach 2,240 billion U.S. dollars, attaining per capita GDP of 1,700 U.S. dollars with a population of 1.32 billion in 2006.

China is expected to control its inflation rate at 2 percent and might be listed ninth in 2006 of the countries and regions witnessing fast economic development.

China's official statistics show that its economy rose by 9.9 percent in 2005, while the country's revised gross domestic products (GDP) growth rate in 2004, is 10.1 percent, 0.6 percentage point higher than the original figure, in accordance with China's first national economic survey.

The Economist reckons that the growth of China's GDP will slow down, owing to the country's measures taken to rein in some of the over-heating economic sectors.

"The concern of the world lies in whether the government is capable of controlling the unsustainable development of some sectors, while not affecting the other sectors," it said.

The report called 2006 a "key year" for Chinese debt-ridden banks, a key factor for China's stable economic development, saying that the Chinese government will press on with bank reforms to meet the coming challenges faced by opening up its financial markets to foreign competition by the end of 2006.

China's booming economy will prompt the development of the world's economy in the long run and facing fierce trade conflicts, China might shift its export strategy from expanding exports to enlarging domestic demands.

Founded in 1843, the Economist Group, a large-scale media group, issues its publications in more than 200 countries and regions. The Economist, one of its publications, is recognized as one of the most influential journals on international news and business.

Source: Xinhua