China's economy is expected to rebound slightly in the second quarter due to its policy easing, new leadership, gains on stock markets and better global economic climate, according to a report from the official China Securities Journal.
In the second quarter, the economy is forecast to grow at 8%, with consumer price index inflation growing at about 2.3%, the newspaper said, citing China's State Information Centre (SIC).
China's economic growth unexpectedly stumbled in the first quarter, falling to 7.7% from 7.9% in the fourth quarter of 2012. The decline was driven by reduced factory output and investment.
The SIC, however, estimated a slowdown in the country's export growth to around 10% in the second quarter from 18% in the first quarter due to rising trade protection.
Meanwhile, import growth is expected at around 8% this quarter, compared with 8.4% in the first quarter. China will release its April trade figures on 8 May.
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"Although the external environment facing China has improved, our country's strong export growth rate cannot be sustained as demand is still not strong and trade protection rises," the paper quoted from the SIC report.
"As European countries are stuck in light recession, RMB real effective exchange rate will face even stronger pressure to appreciate due to increasing protectionism. Therefore, export cannot sustai...