Think tank: China GDP slow down in ´08

China's major think tank has issued a report forecasting that the country's GDP will grow by 10.2 percent in 2008.

China's major think tank has issued a report  forecasting that the country's GDP will grow by 10.2  percent in 2008. (CCTV.com)

The report also gives prediction on the country's consumer price trend, farmers' revenue and real estate development.

The report, issued on Friday by the Chinese Academy of Sciences, says China's economy will continue to enjoy strong growth driven by the favorable economic environment.

However, the 10.2% prediction marks a slow down from the 2007 figure of around 11 percent for the year 2007.

The report says the growth will ease amid fluctuating prices of resource commodities in the global and domestic markets.

Yang Xiaoguang, Chinese Academy of Sciences, said, "We predict that China's economy will continue its bull run in 2008, but there will be a slow down in the middle. The GDP is expected to grow by 10.2 percent to 10.3 percent. "

The report predicted a 4.4 percent rise of the consumer price index for this year with economic tightening measures taking effect. That figure is similar to the 4.6% recorded for 2007. But it warned the index could rise to 5.8 percent if the government fails to work out effective control policies.

Yang Xiaoguang, Chinese Academy of Sciences, said, "If the government's macro-control measures works well,the consumer price will decrease in the second half of this year."

As for the stock market movement, the report pointed out many stocks are likely to go through periodical adjustments, but there are still appreciation possibilities in the future.

Yang Xiaoguang, Chinese Academy of Sciences, said, "We think in 2008 the stock market will experience a fluctuation,and there will be more risks."

The CAS report echoes previous predictions that the world's fastest growing major economy is likely to expand at a slower rate in 2008 than it did the previous year.

But should China record a 10.2 % growth in 2008, it would still signify a double digit growth of three years in a row. That would still indicate strong growth overall, for China's economy.