China’s economy is expected to slow slightly in 2007, but should still grow by just under 10 per cent as the government looks to rein in an investment boom, the country’s central bank has said.
The bank's report said it expected growth of 9.8 per cent, a figure well above the 8 per cent target set by government strategists earlier this month.
The government wants to encourage rapid growth to reduce poverty, but it is trying to balance that with efforts to slow an investment boom in real estate and other industries.
Officials are worried that overspending on unneeded factories and other assets could ignite inflation or a debt crisis.
According to the bank's report, published on the website of the official China Securities Journal, China's economic growth for 2006 was expected to be 10.5 per cent, in line with earlier official forecasts.
Beijing has raised interest rates twice this year, tightened controls on credit and imposed curbs on new construction.
But despite the controls, the government says investment in factories and other fixed assets in the first 11 months of this year soared by 26.6 per cent over the same period last year.
Earlier this month Ma Kai, chairman of China's main planning agency, the National Development and Reform Commission, said that the "relentless expansion has yet to be stopped".
Government economic planners say next year Beijing would focus on trying to shift the basis of China's economic growth from investment and exports to domestic consumption.