On July 9, China's State Information Center (SIC) said that the country's economy is expected to grow about eight percent in 2009, reports Xinhua News Agency, China's official news agency.
The SIC has forecast that China's consumer price index, one of the main indicators of inflation, will decline by about 0.5 percent in 2009 year on year, while the producer price index will fall five percent compared to 2008.
According to the SIC statement, in 2009 China's imports are predicted to shrink by 16 percent and exports by 17.5 percent year on year, while the annual trade surplus is expected to reach US$220 billion, down from US$295.5 billion in 2008.
However, the SIC believes that no further stimulus measures beyond the US$585.7 billion economic stimulus package are necessary and that the Chinese government should focus on enhancing the implementation of the existing stimulus policies and cultivating new areas to boost economic growth.
China's gross domestic product (GDP) grew nine percent in the third quarter of 2008, falling to 6.8 percent in the last quarter and to 6.1 percent in the first quarter this year.