China growth may slide below 9% in 2012

China’s economic growth in 2012 may drop below 9 percent for the first time in a decade, a senior Chinese foreign exchange official said on Tuesday, underlining the gloom in Beijing over the deteriorating health of the global economy.

Still, Huang Guobo, the chief economist at China’s currency regulator, the State Administration of Foreign Exchange, told a forum that policy would remain focused on controlling inflation in coming months.

That echoed comments last week by Premier Wen Jiabao, who said inflation is unacceptably high.

“The Chinese economy is facing serious challenges despite strong growth,” Huang said. “The weakening global demand for Chinese exports will be a challenge…Next year, if the situation continues, China’s growth rate may fall below 9 percent.”

Huang is not the first of China’s many government economists to forecast slower growth. But his statement could signal a strengthening view in the government that growth in the world’s second-biggest economy is moderating.

Reuters

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell