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Bank Forecasts 7.8% GDP Growth for China in 2001
China's Gross Domestic Product (GDP) will grow by 7.8 percent in the year 2001, despite a likely global economic slowdown, a bank report said in Beijing Friday.
Credit Suisse First Boston said in a report that a continuing rise in the United States electronic inventories and the country's slowing economy would lead to a harp deceleration in Asian exports in 2001.
However, economists of Credit Suisse First Boston expect China to be one of the countries in Asia least affected by any global slowdown, electronics cycle or high oil prices.
Private consumption boosted by salary hikes and robust stock markets should be helpful in allowing China weather through external adversity, the economists said.
"Year 2002 will be a real banner year for China and we estimate a GDP growth of 9.5 percent," said Dong Tao, Senior Regional Economist of Credit Suisse First Boston.
The bullishness is based on China's strong exports backed by newly-built electronics production; further improvement in private consumption in a inflationary environment; rapid expansion in the service sector and WTO related foreign direct investment, Tao said.
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