Growth of China’s Gross Domestic Product is likely to drop to 10.5 percent in 2008 because of the slowdown in the United States economy, according to a new report by the Economic Research Institute of China’s Renmin University, a leading economic forecaster. The growth in the GDP will probably drop sharply from 11.4 percent in 2007, the report predicts, because of the effects of the subprime mortgage crisis in and economic slowdown in the U.S. But the report forecasts significantly greater growth for China this year than the Beijing's official target of 8 percent. The GDP has been growing at double-digit rates for five straight years before peaking in 2007, its highest level in 13 years.
Journal of Commerce
