New Zealand Markets open in 6 hrs 2 mins

China forecasts 7.8% growth for 2012

 

A Chinese government office is forecasting economic growth of between 7.7 and 7.8 per cent for the year in a sign of an expected improvement in prospects for the world's second-largest economy.

Director of the Economic Projection Department of the State Information Center Fan Jianping said that factors including government approval of major infrastructure projects would boost the economy in the final months of the year.

Fan was quoted as saying in an interview with the official Xinhua News Agency that new measures aim to stabilise teetering growth while preventing asset bubbles and a renewed spike in housing prices.

Premier Wen Jiabao this week promised more tax cuts and measures to boost consumer spending to reverse a worsening economic slowdown and meet the official target of 7.5 per cent growth.