16 December 2011 04:58 [Source: ICIS news]
SHANGHAI (ICIS)--China will have to tweak its monetary and fiscal policies a little to ensure the world’s second biggest economy keeps to its high single-digit growth pace next year amid fears of another global economic recession, analysts said on Friday.
On 12-14 December, the ?xml:namespace>
Analysts widely expect the Chinese economy to pull an 8-9% GDP growth next year, representing a slowing down from the government’s target of 9.8% expansion for 2011.
The global economic outlook is bleak going into next year, with the eurozone mired in a debt crisis, while the
The country can afford to slightly loosen its monetary policy, analysts said, as inflation pressures have somewhat eased, and as the economy has started to show strains from a domestic credit crunch, which has been hampering trades, including those in the petrochemical sector.
Inflation in the country at 4.2% in November, was the lowest recorded for this year, bringing the 11-month average to 5.5%, official data showed. The increase in consumer prices rose to as high 6.5% in July, before tapering off.
On 5 December,
Some analysts believe that there will be more such moves in 2012, reversing the country’s monetary tightening stance, with expectations that inflation will continue easing down to average below 4% next year.
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