The Chinese Academy of Sciences, a government think tank, forecasts modest growth for the world's second largest economy this year. It also projects a mild uptick in inflation relative to other developing economies.
As China shifts its economic model, its growth will moderate and stabilize. Amidst a push of structural reforms and less reliance on resource intensive industries, top government think tank, the Chinese Academy of Sciences projects growth in China to clock in at 7.6 percent in 2014.
"The 2014 GDP growth we forecast is about the same level with that of 2013. China will continue growing faster than advanced economies and its growth will still be relatively high versus other emerging market nations," Chen Xikang, Research Fellow at Chinese Academy of Sciences, says.
As for consumer prices, the Academy predicts a rise of 3.1 percent year on year versus 2013.
"Compared with other developing countries, a projection of a 3.1-percent rise in consumer prices is actually a mild increase," Yang Xiaoguang, Deputy Director of Center for Forecasting Science of CAS, says.
The Chinese Academy of Sciences stresses that rising labor costs and energy prices will be the main contributors to inflation this year. However, it’s not concerned about runaway inflation, as it's confident the prudent policies from authorities will keep prices in check.
Source:CCTV
