Chinese economy spiralling at 11.5 pc

New Delhi, Aug 9 (UNI) Chinese economy continued its spiralling growth, expanding by 11.5 per cent in the first six months of 2007, a report said.

The Chinese government efforts to rein in growth, which picked up further between the first and second quarters of the year, met with little success, Standard and Poor's report 'China's Economy Refuels In Mid-Air'' said, adding that more measures were to be expected from the China.

''The strong economic impetus of the first half of 2007 means that real GDP growth for the year is now projected to come in at 11.3 per cent,'' world's leading rating agency's Credit Analyst Kim Eng Tan said, adding that, ''However, we expect the authorities to be cautious in applying the brakes. This suggests that the growth momentum could remain in the double-digit range for yet another year, with growth forecast at 10.2 per cent in 2008.'' The report said exceptional economic growth momentum in the first six months of 2007 appears to have convinced policy-makers that overheating is no longer confined to specific sectors. While expecting more administrative measures, the report said, the administration has also expressed a greater willingness to use monetary policy as a means to cool the economy.

''Following three hikes in the first seven months of 2007, we expect further increases in official interest rates,'' Mr Kim said.

The report, however, suggested that the Chinese government is not expected to slam down hard the brakes because it expected important changes in leadership of both the Communist Party and the government over the next year or so. During this period, officials will be even more wary of triggering unrest among the population through a sharp slowdown in the economy.

''It is likely that the monetary authorities' cautious handling of the economy will therefore maintain buoyant economic growth in 2008,'' Mr Kim added.

UNI