BOFIT Forecast for China 2008-2010

China s economic growth slowed in the first half of 2008 as expected. Growth in the foreign trade surplus came to a halt and investment growth showed the first signs of easing. In contrast, domestic consumption continues to grow strongly. Since the Bank of Finland s previous forecast, the outlook for the world economy has deteriorated further, and therefore we have made a slight downward adjustment in the growth forecast for China for 2008 and 2009. The Chinese economy nevertheless continues to grow strongly.