China's GDP growth to hit 8.5 percent this year: ADB

Beijing - China's economic growth is set to moderate slightly over the next two years but will exceed 8 percent on the back of strong investment, rising private consumption and a more stable global economy, the Asian Development Bank (ABD) said Wednesday.

In its annual economic report released at a press conference in Beijing, Paul J. Heytens, ADB country director for China, said China's GDP growth in 2012 is forecast at 8.5 percent, with the priority of macro policy expected to shift from fighting inflation to stabilizing growth.

Supported by stronger global growth momentum, China's economy is likely to expand by 8.7 percent in 2013, reported Xinhua citing the ADB report.

The ADB expected China's exports and imports to increase by around 15 percent and 18 percent in 2012, respectively. The contribution of net exports to GDP growth is projected to remain negative, and the trade surplus will continue narrowing, it said.

China has aimed to increase the volume of total exports and imports by around 10 percent year-on-year in 2012, a sharp slowdown from last year when China's imports and exports rose 22.5 percent year-on-year to $3.64 trillion.

Nominal private consumption is expected to grow by almost 12 percent in both 2012 and 2013, boosted by continued employment and wage growth as well as increased government social expenditure, according to the ADB report.

China's economy expanded by 9.2 percent in 2011 to 47.16 trillion yuan (about $7.50 trillion) from a year earlier when it grew 10.4 percent in 2010.