10 Jan '12, 1pm

China's economy may slow, but still looking bright

China's economy may slow, but still looking bright

SINGAPORE: China's economic growth may be slowing, but it is not all doom and gloom. Analysts said investors need to be aware of downside risks, but they can still rely on the world's second largest economy to deliver relatively good growth this year. China's economic growth may lose some steam this year. But at 8.5 per cent, analysts said China will still be the key growth engine for the world economy. With inflation easing, Chinese policymakers will also have more policy tools at their disposal to stimulate growth. And this bodes well for investors who may be concerned over a hard landing in China. Qu Hongbin, HSBC's chief economist (Greater China), said: "On the fiscal policy front, the government's revenue last year has been growing at a pace of more than 25 per cent, which is almost more than double the pace of the GDP growth rate. "That will give some fiscal ammuniti...

Full article: http://www.channelnewsasia.com/stories/singaporebusinessn...

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