News & Reports News Year 2011 september,2011 10% GDP growth is unlikely

10% GDP growth is unlikely

CHINA is not likely to repeat its spectacular annual economic growth of nearly 10 percent in the next three decades, the president of China Merchants Bank cautioned at a forum yesterday.
The world's second largest economy will not be able to expand at 10 percent like it has done over the previous 30 years when its population, the key to support the growing economy, is likely to decline, Ma Weihua said in Shanghai at a corporate forum held by the JuneYao Group.
He also cautioned that the environment, resources and energy in the most populous country will no longer be able to sustain the two-digit growth while conditions outside the country may also put humps to slow the fast growth that has been a feature in the past.
Ma's remarks echoed concerns by Tao Dong, chief economist for Asia excluding Japan at Credit Suisse, who said in an earlier note that China has probably already entered a relatively lower growth cycle when credit, real estate, exports and small enterprises will all expand more slowly.
China's gross domestic product had been growing at more than 10 percent annually before 2008 when the world financial crisis occurred.