The World Bank raised its 2011 growth forecast for China’s economy to 9.1% from 9% in its East Asia and Pacific Economic Update released on Tuesday, but said China would face growing risks, especially from the euro zone crisis.
The bank reckoned a soft landing of China’s economy is achievable through appropriate loose monetary policy and industrial stimulus.
China’s economy would slow down dramatically after 2012 and the central government should accelerate the transformation of its economic structural adjustment to reduce excessive dependence on the real estate and manufacturing sectors, the bank suggested.
The new update lowered expectations for economic growth in Asia as it believes the deluge in Thailand has substantially hit local manufacturers and slowing demand in developed markets will also hurt Asia’s exports growth.
China’s economic growth is expected to slow to 8.4% in 2012, the report said.
The report noted a significant slowdown in China’s economic growth compared with a year earlier was mainly due to sluggish overseas market demand and monetary tightening policy.
There will be more room for the Chinese government to adjust current economic policies with retreating consumer price gains, the bank said.
Tuesday, November 22, 2011
Wednesday, November 9, 2011
Chinese comsumers are buying gold in huge quantities.
The gold consumption is estimated to hit 400 tonnes this year, a surge from 270 tonnes in 2010
China's gold output may exceed 350 tonnes and consumption reach 400 tonnes this year, according to the head of China Gold Association.
The output in the first nine months of the year hit 259 tonnes, up 4.32 percent from a year ago, said Sun Zhaoxue, also the president of China National Gold Group Corp., at the China Mining Congress and Expo 2011 that concluded Tuesday in the northern coastal city of Tianjin.
"I'm optimistic about the prospect of China's gold industry. The output is estimated to reach 400 tonnes in the next few years and there is potential for further increase," Sun said.
The consumption, however, is estimated to hit 400 tonnes this year, a surge from 270 tonnes in 2010, Sun said. The purchase of gold bars is expected to nearly double to 270 tonnes amid safe-haven buying, he added.
China has a proven gold reserve of 6,327.4 tonnes, making its the largest gold reserve holder second only to South Africa, he said.