Economists Expect China Growth to Slow

A new poll by The Wall Street Journal reports that economists expect China's economic growth to decelerate as the initial impact of the government's stimulus fades.

 

The newspaper says that economists who responded to the poll all think growth slowed in the third quarter from the second quarter's boom, with estimates centering on an annualized expansion of 10.1% in the third quarter after the second quarter's 16.4%.

 

The survey also indicates that the pace of expansion in the country's gross domestic product is expected to moderate to an annual rate of 8% to 9% into 2010 from its peak of around 15% in the middle of this year, says the Journal.

 

Bank economists told the Journal that while China's economic growth has clearly stabilised, there is a growing risk that the massive surge of bank lending this year will lead to asset bubbles and wasted investment.

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