China's central bank governor says the economy could grow 7 percent in the second half of this year, accelerating from the first six months and defying widespread expectations for a slowdown. Ciara Lee reports
An 80 billion dollar project. 'Beijing New Airport' is tipped to become one of the world's largest when it opens next year. The massive infrastructure project is a good example of China's still rapidly growing economy. Talk of a slowdown has been dismissed. The central bank expects growth of 7 percent in the second half of this year, even better than its forecast-beating first half of 6.9 percent. (SOUNDBITE) (English) DARREN SINDEN, MARKET ANALYST, PEPPERSTONE, SAYING: "GDP forecasts for China are pretty much wherever the People's Bank of China want them to be and the government want to be the guys at the top said it's possible we'll have 7 percent growth in the second half of the year and no doubt they can they can manufacture you they if they want to. I think the real questions are how long that's sustainable for and at what cost to the you know to the financial infrastructure in the rest of the country." Beijing says the driving force is rising household consumption. That's good news for President Xi Jinping whose twice a decade Communist Party congress begins this week. He's expected to strengthen his grip on power in a major party leadership reshuffle. China is in the midst of publishing September data, culminating in its third-quarter GDP numbers on Thursday. Bumper trade figures last week hit record highs. And a year-long construction boom has helped boost prices for building materials, giving China's long-ailing industrial sector its best profits in years. Investors though will be waiting to see if growth this year will give China's leaders the confidence to push on with reforms over the next five years.