Tuesday, January 18, 2011

Deutsche Bank China's economic development challenges of greater inflation

 Deutsche Bank 10, the ninth held in Beijing, Deutsche Bank forecasts GDP growth in China this year of 8.7%.

Deutsche Bank Greater China chief economist Jun Ma, MD, in the short term, the Chinese economy is currently facing the greatest challenge is inflation. The risk of inflation was significantly greater than the risk of economic slowdown.

His baseline projections, this year CPI growth in the second quarter, up 5% -6% of the high points in the second half slowed to around 3% -4%. However, can not rule out a number of upside risks lead to greater inflationary pressures. Ma said that in the first half of the inflation process to continue upward, due to the uncertainty of inflation itself and the resulting tightening of policy uncertainty, the stock market will face greater resistance. However, the market began to peak shape inflation expectations, the stock market should have better performance. (Qi Zhongxi)

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