China's economy to grow 9.5% in 2010: World Bank

[Spring Onion]

China's economy to grow 9.5% in 2010: World Bank

BEIJING: China's economy would expand 9.5% in 2010, the World Bank said in a report released Wednesday.

"In 2010, government-led investment is bound to decelerate, while exports are likely to continue to recover amid a pick up in the global economy, and consumption would remain solid," Xinhua news agency quoted Ardo Hansson, the World Bank lead economist for China, as saying.

Despite the global recession, China's economy grew 8.7% in 2009. The growth momentum continued in the first months of 2010.

The World Bank found that massive investment-led stimulus was the key driving force in propping up the economy last year.


China's economy to grow 9.5% in 2010: World Bank - China - World - The Times of India

 

[xuxu1457]

Welcom Jana~~

 

[Spring Onion]

Thank you. we love China

 

[aimarraul]

i remember our premier said he only want "quality" 8% and hope to reduce the pressure on local govt.
i prefer this way。
go ahead,evil TG

 

[Justin Joseph]

i remember our premier said he only want "quality" 8% and hope to reduce the pressure on local govt.
i prefer this way。
go ahead,evil TG

he have not said that he want less growth but he have said this year is very crucial and growth rate will fall.

 

[riju78]

good for china and for world economy...
hopefully one day jana will post something positive about india too..just a thought!!!

 

[aimarraul]

he have not said that he want less growth but he have said this year is very crucial and growth rate will fall.

you watched the whole two sessions or only a press conference or just one report from indian media?

 

[ChinaToday]

People in india keep on predicting the chinese economy will collapse in so and so year.. fat chance of that happenning now.

 

[ChinaToday]

China’s Economy Finished 2010 Strong With Anti-Inflationary Action Well Underway

China’s economy accelerated at the end of 2010, but kept inflation in check, showing the world’s second largest economy is still outpacing its Western trading partners by leaps and bounds.

Among the slew of economic data released by National Bureau of Statistics (NBS), China’s GDP showed stable and vigorous growth of 10.3% in 2010 and 9.8% in the fourth quarter of 2010.

Domestic demand contributed to 92% of the GDP growth rate. China’s retail sales surged 19.1% in December, after increasing 18.8% the month before. The whole year growth reached 18.4% to RMB 15.5 trillion.

The economy’s strength will drive further increases in household income this year, supporting “solid growth” in consumer demand, JP Morgan Chase & Co said in a note.

For the first time since 1997, the growth of per capita disposable income among rural residents is higher than that of urban residents. In the countryside, per capita net income rose 10.9% to RMB 5,919 ($898). The annual per capita net income for urban residents was RMB 19,109 ($2,900) in 2010, up 7.8% year-over-year.

Faster rural income growth is largely due to government policies favoring farmers and agriculture production, increased health-care coverage and the removal of taxes and fees in the past few years.

The rural incomes surge will greatly boost domestic consumption. Wang Tao, a Beijing-based economist at UBS AG, who previously worked at the International Monetary Fund, said “There is a vast rural market to tap.”

“This helps confirm our long-held view that China is starting to experience a consumption boom, which should last for many years,” Nomura economists Chi Sun and Tomo Kinoshita said in a research note.

China’s soaring CPI also stepped on the brakes at the end of 2010 finally. The CPI in December grew by 4.6%, slower than in the previous month. The whole year’s CPI data also ends with a comparatively modest number of 3.3%.

After a 2.4% increase in March, the upward trend of CPI lasted until November when the data climbed to an 18-month high of 5.1%.

the latest figures indicate the country’s measures to curb inflation have been effective.

The latest data came amid an important meeting between President Obama and Chinese President Hu Jintao at the White House. The potential gains for Chinese spending are a draw to Obama, who pressed Hu for greater access for American companies.

“We welcome China’s rise. We want to sell you all kinds of stuff,” Obama said to Hu. “We want to sell you planes, we want to sell you cars, we want to sell you software.”

China’s vehicle sales rose 32% to 18.1 million in 2010, keeping the auto market ahead of the U.S. for the second year running. Sales are expected to grow about 15% in 2011.

“Growth remains very robust in China,” said Jay Bryson, global economist with Wells Fargo.

China’s GDP growth is expected to be above 9% in 2011 as CPI growth holds below 4%.

China’s coming surge in domestic consumption makes it by far the most desirable major economy in which to invest.

Adam Roseman

Founder & Managing Partner

ARC China

China?s Economy Finished 2010 Strong With Anti-Inflationary Action Well Underway

 

[ChinaToday]

China 2010 Foreign Investment Rises To Record

Foreign direct investment in China rose to a record last year, the government said, underscoring confidence that rising incomes will boost demand in the world’s fastest-growing major economy.

Investment climbed 17.4 percent to $105.7 billion in 2010 from a year earlier, the Ministry of Commerce said in a statement released in Beijing. Spending in December rose 15.6 percent from a year earlier to $14 billion. Estimates of five economists surveyed by Bloomberg News for the month ranged from an increase of 29 percent to a decline of 21 percent.

Boosting wages and reducing income inequality will be major tasks over the next five years, China’s leaders said in October after setting targets for the economy for the 12th five-year plan. Samsung Electronics Co. and LG Display Co., the world’s two biggest makers of liquid-crystal displays, received Chinese government approval to build LCD factories in the country and meet surging demand.

China in 2009 overtook the U.S. to become the world’s biggest car market, passed Germany as the largest exporter and likely surpassed Japan to become the second-biggest economy in 2010. It may overtake the U.S. as the largest economy by 2027, according to Goldman Sachs Group Inc. chief economist Jim O’Neill.

The economy probably expanded about 10 percent, Vice Premier Li Keqiang said. Growth may slow to 8.7 percent this year as the government tries to limit increases in asset prices, the World Bank said.

Foreign investment inflows are adding to liquidity flooding the economy from the trade surplus and surging bank lending and putting pressure on the central bank’s policy of restraining yuan appreciation.

The People’s Bank of China has raised interest rates and told banks to keep more money as reserves to mop up cash. The government is also encouraging outbound investment, allowing companies to keep foreign-currency earnings overseas and boosting use of the yuan for trade and investment.

Outbound investment by non-financial companies climbed 36.3 percent to $59 billion, the commerce ministry said. Overseas mergers and acquisitions by Chinese companies rose more than 30 percent last year to a record 188 with a combined deal value of $38 billion, PricewaterhouseCoopers LLP said at a press briefing.

Foreign investment in China’s property industry accounted for 22.7 percent of the total $105.7 billion last year, Yao Jian, a spokesman for the commerce ministry, said at a briefing in Beijing. The ministry will improve monitoring of foreign investment in the industry, he said.

Middle-income and affluent consumers with annual household incomes of more than 60,000 yuan ($9,000) will probably almost triple in the next 10 years to 415 million, Boston Consulting Group Inc. said in a report.

There will be “strong” increases in salaries in the five years to 2015 as the nation’s supply of labor dwindles and consumers spend more and save less, Credit Suisse Group AG said in a report. Wages may rise by 19 percent a year and private consumption may climb to 41.7 percent of GDP in 2015 from 35.6 percent last year, the bank estimated.

Companies in the online shopping and financial industries will benefit most from the increase in wages and consumer spending during the period, analysts led by Vincent Chan and Peggy Chan wrote in the report.

Wal-Mart Stores Inc. and a group partners last month agreed to invest more than $500 million in Chinese online retailer 360buy Jingdong Mall.

China became the largest LCD-TV market in the third quarter, surpassing the U.S., according to Soh Hyun Cheol, an analyst at Shinhan Investment Corp. in Seoul. Samsung and LG are planning to build multi billion-dollar factories in Suzhou and Guangzhou to meet Chinese demand for flat panel displays used in televisions and computers.

Taiwan’s AU Optronics Corp. last month said its board approved an additional $167 million investment in its plant in Kunshan, eastern Jiangsu province, that makes color filters used in LCD TVs and flat-screen monitors. The company is awaiting approval to build a $3 billion LCD plant in Suzhou.

The United Nations’ trade and development agency predicted global foreign direct investment flows would climb to $1.5 trillion this year and $2 trillion in 2012 from an estimated $1.2 trillion in 2010, with China remaining the top target. India and Brazil will trail as the No. 2 and No. 3 recipients, according to the report.

China was the second-largest recipient of FDI in 2009, attracting $95 billion, behind the U.S. with $130 billion, the United Nations said in a report. China estimated its FDI in 2009 at $90 billion.

 

[boris]

very good,i like it

 

[CardSharp]

China survives another year of naysayers