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Strong growth in investment and foreign trade will boost China's economic growth rate for 2006 to 10.4 percent, the Asian Development Bank said Wednesday in a major new report.

 

"The economy posted very rapid growth in the first half with fixed-asset investments, exports, and imports all rising significantly from a year earlier," said ADB chief economist Ifzal Ali at the launch of Asian Development Outlook 2006 Update.

 

In its quarterly report released in April, the bank had predicted that China's economy would grow by 9.5 percent this year.

 

"Even with an interest rate increase in mid-August that followed earlier monetary and administrative tightening measures, we expect second-half cooling to be modest. Our concern is that if the current investment boom continues, it could result in chronic overcapacity," he said.

 

China's economy grew by a faster-than-expected 10.9 percent in the first half, building on 10.2 percent growth in 2005, according to China's National Bureau of Statistics.

 

(Xinhua News Agency September 6, 2006)