The Asian Development Bank (ADB) has revised its prediction for China's inflation rate in 2010 down to 3.2 percent, from its estimate of 3.6 percent made in April. Meanwhile, it has reiterated its prediction that Chinese GDP will grow by 9.6 percent in 2010 and by 9.1 percent in 2011.
In its updated Asian Development Outlook 2010, the ADB says Chinese economic recovery is still strong and it is the main force behind global economic recovery. The ADB predicts that in the third quarter of this year China's GDP will grow by nine percent, increasing at a slower rate of eight percent in the fourth quarter.
The ADB also indicates that the Chinese economy faces risks such as weak demand from overseas, the European debt crisis and the weak euro. China's development in 2011 will encounter obstacles including weakened impact of the government's stimulus policy and a further slowing of industrial growth, the ADB said.