CCB says China's GDP to exceed 10% in Q4

The China Construction Bank (CCB) predicts the country's gross domestic product (GDP) in the fourth quarter will exceed 10 percent, with a full-year growth of estimated 8.3 percent, reported the China Securities Journal on Nov. 2.

According to the report, there will be vigorous growth on investment and consumption demand, and the narrowing of the gap on imports and exports has slowed down in the fourth quarter.

Due to the recovering economy, China's purchase management index rose to 55.2 percent in October, up 0.9 percent from the previous month, according to the National Bureau of Statistics last week, indicating investors and consumers have picked up confidence during the first months of the fourth quarter.

The country's exports would be boosted by developed countries' economic warming with a estimated trade surplus of $250 billion this year, said the report, delivering optimism on overseas market demand.

China's domestic demand was also expanding quickly, as shown by automobile sales breaking 5 million in the first nine months due to tax cuts and stimulus measures.

However, the country's economic recovery was not solid yet and there were still many uncertainties ahead, said the report, suggesting overcapacity on industrial output and increased inflation expectations.

The report also gave suggestions that the government should keep monetary policies relatively loose and strengthen guidance and management on possible inflation, which would help hold back the growth of consumer price index.

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