August 21, 2009

Growth in China predicted to rise

A think-tank in China predicts the country's gross domestic product will grow about 8.5 percent in the third quarter.

The prognosis made by the State Information Center comes soon after the Shanghai Composite index fell into bear territory, dropping 20 percent the past two weeks.

In the second quarter, the Asian economic behemoth's GDP rose 7.9 percent.

The think-tank said exports would drop 20 percent in the third quarter compared with the same period a year ago. Imports were predicted to drop 12.7 percent, the China Daily reported Friday.

The centerr said China's economy was hampered by overcapacity, especially in steel and concrete, which is extremely bad for China's future industrial restructuring and upgrading.