(China Knowledge) - Morgan Stanley raised its forecast for China's 2009 Gross Domestic Production (GDP) growth to between 7% and 8%, higher than the previous 5.5%, sources reported, citing Morgan Stanley Asia Chairman Stephen Roach as saying.
Roach also warned that China's economic growth would fall back to a level between 5.5% and 7% in 2010 due to the export slump caused by the global economic recession.
China will find it difficult to maintain a GDP of 8% next year as it depends on the external economic environment rather than the internal economic environment, said Roach, adding that China may experience a W-shaped recovery instead of a V-shaped recovery.
Roach suggested that China should expand domestic demand according to the 11th Five-Year Plan, double the size of the country's social security fund to US$160 billion and strengthen the pension reform.
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Ruin-Nation
11 months ago
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