China adjust in expectations for growth

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China expects its economy to climb by 7.5% over the next year, as it sets more realistic predictions for growth in the current economic crisis.

China has often exceeded the target rate of 8% growth, which has been set for the last eight years. However, this figure has been hard to reach during the global financial downturn.

The effects of the worldwide recession also meant that the country had to cut gross domestic product (GDP) estimates.

As the Chinese economy has previously experience rapid growth, this slowdown has adverse effects on its economy, including high inflation and a larger gap between the rich and poor.

Last year, China’s annual economic output grew by 9.2% and in 2010 GDP grew by 10.4%.

In a bid to reach stability, Chinese leaders have decided to cut expectations for the growth rate.

Speaking to the BBC Premier Wen Jiabao said: "I wish to stress that in setting a slightly lower GDP growth rate, we hope... to guide people in all sectors to focus their work on accelerating the transformation of the pattern of economic development and making economic development more sustainable and efficient."

Inflation reached 5.4% last year in China, well exceeding the government target rate of 4%. The target rate in 2010 was also set at 4% by Mr Wen.

The cost of food and other consumer goods have increased in the country, causing widespread unrest.

“China's economy is encountering new problems. There is downward pressure on economic growth. Prices remain high. Regulation of the real estate market is at a crucial stage,” Mr Wen continued.

Transfer Money to China

If you are looking to invest in China, think carefully about how you will be transferring money to China.

Foreign currency exchange rates quoted by banks are almost always worse than the exchange rates available through specialist currency dealers.

If you plan to send money to China, to invest in property or for any other reason, ensure that you compare the market to secure the best rate for your overseas currency.

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