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Old 02-05-2008, 11:18 AM
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Default Slowdown would not hurt China - World Bank

The World Bank says China's economy will slow this year as the effects of a global slowdown take hold.
It is forecasting that the Chinese economy will expand 9.6%, down from the Bank's original forecast of 10.8% made last September.

The report also says inflation will continue to be a problem, with consumer prices rising 4.6%.

But the bad weather over the last few weeks is only expected to have a temporary impact according to the Bank.

Snow effect

Last year inflation rose to 6.5%, the highest level in 11 years.

Economist say that could head even higher in January and February because of food shortages caused by the worst snow in decades.

But the World Bank forecasts that inflation pressure will ease later in the year.

A moderate global slowdown this year would not hurt China much, according to the report.

It said the Chinese government could easily raise spending to compensate for falling demand overseas.

http://news.bbc.co.uk/1/hi/business/7225886.stm
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