The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Expert's View
Market Watch
North American Report
Government Documents
Expat's Eye
Photo Gallery
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue

Economic Forecast for 2011
Special> 2010 in Retrospect> Economic Forecast for 2011
UPDATED: January 7, 2011
Wang Jianmao:
Annual consumer price index (CPI) growth will top 3 percent


Wang Jianmao, Professor of Economics at the China Europe International Business School 

"The current CPI growth rate target of 3 percent will be difficult to rein in over the next few years," said Wang Jianmao, Professor of Economics at the China Europe International Business School. Loose domestic monetary policies have resulted in excessive liquidity, causing prices to increase over the previous year. Government investment will edge out private investment in several areas, according to Wang.

The home prices saw an average increase of 23.5 percent in 2009, which will definitely push up the rents. The impending property taxes may curb the upward spiral of property prices to some extent, but would add momentum to the sharp rent rises.

New reforms targeting the prices of labor and capital will also occur in 2011, causing these previously underpriced resources to increase in cost.

Internationally, the exchange rate of the renminbi (RMB) against the U.S. dollar will keep rising as dollar depreciates. The best bet for U.S. monetary policy makers is to make the dollar depreciate while maintaining its dominant position. The United States might use its quantitative easing monetary policy to force other countries to appreciate their currencies.

China's economic growth is set to slow down in 2011, while other developing countries will maintain high growth rates. Wang believes that these other countries will see economic breakthroughs similar to that seen by China in recent years, which will lead to a rise in energy prices, further pushing up China's CPI.

Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
Most Popular
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved