Economic Forecasts out of China are Mixed ..

BEIJING (Dow Jones)--China's gross domestic product is expected to grow 9.8% and the consumer price index is likely to increase around 3.7% this year, China National Radio reported Sunday, citing a government think tank.

A forecast issued by the Economic Forecasting Institute of the China Academy of Sciences said China won't see serious inflation in 2011 and the inflation pressure will ease later in the year.

The report said domestic demand would become a major driver of the economy growth this year and the foreign trade growth and property price growth are likely to be slower than in 2010.

China's central bank has raised interest rates twice since October and raised the reserve requirements ratio seven times since last year amid concerns that excess liquidity would boost inflation.

China's CPI growth was 4.6% in December, slowing from a record high of 5.2% in November last year, and GDP growth stood at 10.3% in 2010, according to official data.

Newspaper website: http://www.cnr.cn/

-By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com

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(END) Dow Jones Newswires
January 22, 2011 22:44 ET (03:44 GMT)
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