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Tuesday, August 19, 2008

JP Morgan: China's growth to slow to between 8% and 9% in next five years.





JP Morgan: China's growth to slow to between 8% and 9% in next five years. According to news agency CNA , Financial services firm JP Morgan stated recently that over the next five years, China's economic growth was likely to slow down to between 8% and 9%, and inflation was likely to remain between 4% and 5%. However, JP Morgan said that the expected economic slowdown was unrelated to the Olympic Games. There have been apprehensions that while the preparations for the games had resulted in a significant increase in construction activity, the economy might face a severe downturn after the games ended. JPMorgan said that the economy had already begun to show signs of slowing in the months preceding the Olympic Games as a result of the global slowdown, rising import prices and a slowdown in exports. According to JP Morgan, the games accounted for only 3.5% of the GDP and in the long term, China's strong domestic demand would ensure robust economic growth.







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