The OECD (Organisation for Economic Co-operation and Development) forecasts that China’s gross domestic product will exceed 11 percent this year before slowing to just under 10 percent in 2011. (22 page pdf)
* Deteriorating trade and still-strong domestic demand would cut current account surplus sharply in 2010, while the inflationary pressure was likely to remain subdued with mitigation in food prices
* the smaller growth rate in 2011 will be because of the phasing out of the stimulus package.
The OECD’s latest economic outlook projected gross domestic product across the 30-nation OECD economies to rise by 2.7 percent this year more than 1.9 percent predicted in November and by 2.8 percent in 2011, up from its earlier forecast of 2.5 percent.
Economic activity in the US is expected to rise by 3.2 percent this year and the next year instead of the 2.5 percent predicted in November. The euro region will advance 1.2 percent compared with the earlier forecast of 0.9 percent, the OECD report said. Japan’s economy will expand 3 percent this year instead of 1.8 percent
The global economy is now anticipated to grow 4.6 per cent in 2010 compared to the OECD’s November projection of 3.4 per cent. Further, 2011 growth forecast has been raised to 4.5 per cent from earlier estimate of 3.7 per cent.