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China Likely To Grow 8% In '09: Think Tank Head

Friday, May 22, 2009

TOKYO (Nikkei)--The Chinese economy will grow by about 8% this year, said the director of a key Chinese financial research organization at the annual Future of Asia conference here Thursday.

Xia Bin, who heads the Financial Research Institute of the Development Research Center of the State Council, said Beijing's stimulus measures have helped the economy hit bottom, and that a second-half recovery will push the annual growth rate up to 8%.

However, he also said the Chinese economy lacks a solid foundation and faces structural problems, and needs time to adjust to the dramatic changes brought by the crisis.

Even if the economy were to recover in 2010-2011, achieving growth of 11-12% would be difficult, Xia said, adding that major structural reform is needed to help stimulate consumer spending over the longer term.

Titles of speakers, names of companies, etc., were correct as of the time when the forum was held.