China's economy will likely grow 10.8 percent in the second quarter, rebounding 0.2 percentage point from that in the first three months, the State Information Center forecast in a report published today.
The research unit under the National Development and Reform Commission also predicted that consumer prices, the main gauge of inflation, will drop to 7.5 percent in the second quarter from 8 percent in the first three months.
"It is less likely that China's economy will become overheated or cool down too quickly in the second quarter," said the report. "But inflationary pressure will remain huge and it will continue to be the top priority for macroeconomic policy makers."
It also said the weight of items other than food costs will increase in the overall consumer price index and create a new challenge.
In the first quarter, China's gross domestic product rose 10.6 percent year on year, down 1.1 percentage points from the same period last year due to disruptions caused by winter storms and various government efforts to tame inflation.
Consumer prices jumped 8 percent through March, with the nearly 12-year high of 8.7 percent being recorded in February.
To manage sustainable development, economists with the center suggested a stable macroeconomic policy and said it is better not to launch other tight controls at the moment.
(Shanghai Daily May 6, 2008)
