Analyst optimistic about China's economic foreground

Head of Asia Regional Research of UBS Wealth Management Yonghao Pu said in Hong Kong Thursday that China's economy would continue its controlled slowdown.

"China's economy remains on course for a soft landing and will continue to decelerate. Growth will slow from 9.2 percent in 2004 to 7.7 percent in 2005 before rising to 8.5 percent in 2006," saidPu.

It was predicted by UBS Wealth Management that in 2004 the global economy experienced the highest growth in almost 20 years despite the many geopolitical and economic uncertainties.

Asian economic growth will slow in 2005 but will remain healthy. In his presentation on Asia Investment and the China Economy, Pu said investment outlook would be conditioned mainly by the strengthening of Asian currencies, continuing low interest rates, and a shift in the growth engine from exports to domestic demand.

Economic growth in Asian economies would shift from exports to domestic consumption as a result of real wage increase and the wealth effect from rising property prices.

Source: Xinhua