BEIJING, Sept. 7 (UPI) -- China's economic growth next year, affected by global conditions, could dip below 9 percent for the first time since 2001, a state economist said.
China's growth rate, as measured by gross domestic product, could be pulled down next year because the deteriorating economic momentum in the largest developed countries could challenge China's export-driven economy, said Huang Guobo, chief economist at the State Administration of Foreign Exchange, China Daily reported.
"If the situation continues into next year, China's GDP growth rate may decrease to less than 9 percent," he told a forum in Beijing.
China's GDP growth in 2010 was 10.3 percent.
Huang warned China may face further imported inflationary pressure because of soaring commodity prices.
Official figures show China's GDP grew 9.5 percent in the second quarter of this year, down from 9.7 percent in the first quarter. The decline was blamed on steadily tightening monetary policy to stem inflation and soak up excess liquidity.
China's inflation in July hit a 37-month high of 6.5 percent.
The report quoted economists as saying China's central bank will not have enough room for the remainder of the year to further raise the interest rates and reserve-requirement ratio.
The GDP in the third quarter is forecast to slow down further to around 9 percent. UBS AG downgraded China's GDP growth forecast to 9 percent this year and to 8.3 percent in 2012.
