World Bank: Fewer Chinese steel investments in 2005
The World Banks quarterly report released on April 27 states that China's economy will grow 8.3% in 2005 and the inflation rate will be around 3.5%. The countrys growth reached 9.5% in 2004, while the overall growth of East Asian economies reached 6%. However, World Bank expects a slow down in the domestic growth of the country this year. The country saw 17.2% year on year increase in its first quarter 2005 investments. The figure showed 24.9% increase in 2004, accounting for 45% of the countrys GDP. Now, World Bank anticipates a reduction in the investments with a shifting away from the overheated steel and cement industries to retail and fmcg industries due to smaller poverty rates in the country.