Chinese Growth Revised Up By 1%

The World Bank has announced today that it is increasing its projection of China’s economic growth over the year by 1%, as a result of growing consumer spending within the economy.

The announcement takes the prediction of growth in China for the year to 11.3%, revised upwards from a previous forecast of growth at around 10.4% on the year, making it by far the fastest growing economy in the world, and a serious contender for the number one spot ahead of the US in years to come.

With incredibly strong exports reflected in a growing trade surplus, and widespread business investment in the Chinese market, the economy has grown faster than any other in the world, seeing it turn into a fledgling economic superpower.
And with average consumers liberated by increasing wages and living standards, the World Bank are predicting that growth could easily be supported from within the Chinese economy, rather than relying on trade and investment from abroad.

The predictions came in line with government figures released today, which show a growth of 17.1% in retail sales through the year on August, with consumers enjoying rising salaries and growing disposable incomes.

However, with inflation beginning to gather serious momentum, particularly in food and meat products, the economy could begin to suffer the economic and social effects of overpricing and currency devaluation.

As a result, the central bank of China have been engaged in wide-ranging measures to try to reign in the effect of inflation, including four interest rate rises and consecutive increases in the bank cash reserve ratio.

Nevertheless, analysts have taken the forecast that China’s own population are to play a more significant part in supporting the economy as a positive sign for the progress of the economy as a whole, which should eventually see a move away from a total export dependency.

Story link: Chinese Growth Revised Up By 1%