China's economic growth rate expected to hit 8 pc in 2013

Last Updated: Sun, Jan 27, 2013 06:40 hrs

China's economy will pick up a little pace in 2013 and inflationary pressures will increase, the deputy governor of the country's central bank has said.

During a debate at the World Economic Forum in Davos, Switzerland, Yi Gang said that he thought China's growth rate will be about eight percent this year.

According to CNN, he said that consumer price inflation could reach three percent or slightly higher.

The world's second-biggest economy grew by 7.8 percent last year, much below the average 10 percent growth seen in the past three decades, but better than the government's own target of 7.5 percent, the report said.

The annual figure was increased by a recovery in industrial production and exports in the fourth quarter, which grew 7.9 percent, prompting economists to forecast a slow but steady recovery in 2013, it added.

According to the report, China's manufacturing sector showed more signs of improvement this month, with a preliminary reading of purchasing managers' sentiment rising to its highest level in two years.

Inflation rose to 2.5 percent in December, as a spurt of extremely cold weather drove food prices higher.

That compared with 2 percent in November, but still represents tame inflation, the government aims to keep annual inflation below 4 percent.

China is trying to rebalance its economy, placing greater emphasis on consumption. Yi said domestic demand was playing an ever more important role in the economy as growth in incomes outpaced GDP growth.

According to the report, he said that China would continue to aim for a reduction in its current account surplus as a percentage of GDP. (ANI)

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