China's real GDP growth is forecast to average under 8 percent per year from 2003 to 2007, similar to the rate recorded in the previous five years, said the Economist Intelligence Unit (EIU).
In its latest world economic forecast updates reaching Hong Kong, the EIU said China's membership of the World Trade Organization (WTO), which occurred in late 2001, should bring economic benefits to China in the medium term.
"In the initial period following entry, import volumes will rise more quickly than exports as trade barriers are lowered," the report said.
It remarked that the emerging Asian region seems particularly likely to see a re-balancing of growth, as sales into the Organization of Economic Cooperation and Development (OECD) are rising slowly. Many countries are instead relying on exports to China, as well as efforts to boost their own domestic demand.
As for the Hong Kong Special Administrative Region (HKSAR)'s economy, real GDP growth in 2003 is forecast to average 2.5 percent during the period from 2003 to 2007.
"Over the long term, however, the HKSAR will benefit from China's accession to the WTO, which will help the expansion of its export markets. Hong Kong should also benefit from its position as a jumping-off point for foreign direct investments into the Chinese mainland," it said.
(Xinhua News Agency January 25, 2003)
