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BEIJING, Oct. 1 - China's economy is expected to grow by 10.5 percent and the consumer price index by 1.5 percent in 2006, according to the latest report published by a research group under the People's Bank of China, the central bank.
The report also projects the country's gross domestic product (GDP) to grow by 9.5 percent in the first half of 2007, with the CPI up 1.8 percent. China's economy will continue to maintain a steady and fast growth, though the growth rate might slow down, the report said. The country's consumption will keep a fast growth in the future; the growth rate of domestic investment will slow down but is still on the fast track; the growth rate of export will gradually fall and net export will decrease for reasons of slowing global economy and rising trade frictions1, analyzed2 the report. China's economy grew at 10.2 percent last year and the growth rate was 10.9 percent in the first half of this year. Since the second half of last year, the government has strived to cool the economy before it is overheated. The growth rate of fixed3 assets investment, a major indicator4 of economic growth, dropped 5.9 percentage points from July to 21.5 percent in August, as reported by China's National Bureau of Statistics.
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