ADB predicts China's 2008 economic growth at 10%

The Asia Development Bank (ADB), a Manila-based bank, forecast that China's economy will grow at a slower pace at 10% in 2008, and 9.8% in 2009, down from the 13-year-high growth rate of 11.4% in 2007.

It also predicted the country's inflation rate to reach 5.5% this year, and about 5% next year, up from 4.8% in 2007. It warned the rising food prices would intensify the inflation pressure in the economy in its annual outlook report released on Wednesday.

Last September, ADB estimated China's inflation rate would reach about 3.8% in 2008, and the country's GDP growth rate for the year would reach 10.8%.

The bank said China's export growth would moderate to 19% in 2008, down from 26% in 2007, as confronted with the shrinking demand in the world.

The Chinese government targets to keep the economic growth rate at 8% this year, and the inflation rate at 4.8%.