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Trade surplus growth predicted to slow to 6%

(Xinhua)
Updated: 2007-02-01 14:19

China's trade surplus will rise by six percent to 189 billion U.S. dollars in 2007, according to a prediction by a government think tank.

Related readings:  China's GDP to grow around 10 percent in '07 Policy bank to focus on imports  Trade surplus reaches US$177b

The growth rate is a huge drop from last year's growth, which took the trade surplus in 2006 to 177.5 billion U.S. dollars, from around 100 billion dollars in 2005.

According to a report by the Academy of Macroeconomic Research under theNational Development and Reform Commission(NDRC), China's total exports will hit 1.147 trillion dollars, up 18 percent on last year, compared with the growth rate of 27.2 percent in 2006.

The decrease in exports can be attributed to a general slowdown of the global economy and the country's tax reforms, said the report.

Imports are forecast to rise 20 percent - the same growth rate as last year - to 958 billion U.S. dollars.

The report, which was compiled last month, said the growth rate of China's economy would slow to less than 10 percent in 2007, after four years of double-digit growth.