China's economic growth likely to fall below 9 percent in 2012, warns economist

Beijing, Sept 7 (ANI): China's economy is likely to fall below 9 percent growth next year, due to faltering economic recovery of developed countries.

State Administration of Foreign Exchange Chief Economist Huang Guobo warned that China's gross domestic product growth could fall below 9 percent if global demand failed to improve next year, the China Daily reports.

Guobo said China's economy faced a threat from sovereign debt crisis, which had shaken confidence in the markets worldwide.

According to Xinhua, China's gross domestic product (GDP) rose by 9.5 percent year-on-year in the second quarter of 2011 due to tightened monetary policy.

This marked a decrease from 9.7 percent growth recorded in the first quarter of 2011 and 9.8 percent in the fourth quarter of 2010.

The UBS AG firm also downgraded its China's GDP growth prediction from 9.3 percent to 9 percent in 2011 and from 9 percent to 8.3 percent in 2012. (ANI)