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Price decline soon: report

— Photo: Xinhua

Seeds of growth: Farmers in a rice field in Ceheng County, Guizhou Province, recently.

BEIJING: The Chinese Academy of Social Sciences (CASS) has predicted a 10.7 per cent growth in the gross domestic product (GDP) in 2008, though it said the speed would be slower compared with the previous year.

The added value of the agricultural sector would increase by 3.2 per cent, and that of the industrial and the service industries 12.2 per cent and 10.9 per cent respectively, according to a report released by CASS.

The fixed assets investment would hit 17.03 trillion yuan, up 19.1 per cent year-on-year, still significantly higher than the growth of the GDP and the consumer price index (CPI), said the report on the economic situation in 2008.

The high-flying prices would decline in the latter half as the government policies start to pay off, but the annual commodity retail price index and the CPI would still be around 4.4 per cent and 5.5 per cent, said the report.

The annual per capita disposable income in urban areas would gain 11.1 per cent, and that in rural areas would increase by 7.3 per cent.

Both the urban and rural income growth would be lower than 2007, said the report.

The retail sales of consumer goods would for the first time rise above 10 trillion to 10.46 trillion yuan, and continue to be a major factor behind national economic growth, it said.

Import and export growth would slow down to 23.3 per cent and 19 per cent because of the uncertainties in international economy, and the trade surplus would be $270 billions, said the report.

China posted a GDP growth of 11.9 per cent in 2007, according to the results of preliminary verification announced by the National Bureau of Statistics early this month.

China hopes the E.U. can recognise its full market economy status soon and lift restrictions on exporting high-tech consumer products, said a senior official here.

The two sides should deepen economic and trade cooperation and promote mutual benefits and joint success, said Vice-Premier Wang Qishan while co-hosting the first China-E.U. high-level economic and trade dialogue together with E.U. Trade Commissioner Peter Mandelson.

Mr. Wang said the dialogue had injected new dynamics into the development of the strategic partnership.

China and the E.U. were important partners and the two sides could conduct cooperation in a wide range of fields, Mr. Mandelson said. — Xinhua

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