Forex updates- China’s Economic Growth

China’s economy to improve in second quarter enhanced by increasing investment and a slower decline in exports, a leading government economist remarks on Friday.

According to latest Forex updates the annual growth in GDP slows down in the first quarter from 6.8% to 6.1%, but economists said this marked a development in sequential, quarter-on-quarter increase.

This trend will continue, according to Zhang Liqun an economist with the Development Research Centre, a think tank under the China’s cabinet, the State Council, as demand and supply come into balance.

In March export declined by 17.1% from earlier year, improving from 25.7% decrease recorded in February. Zhang said that he expected exports for all of 2009 to reduce 10-15%.

The pace of investment, which rose up sharply in the first quarter will continue to gather momentum all through the year, Zhang said, without giving any estimate.

Fixed-asset investment expanded 28.8% in the first three months as compared with past years as the first stage of Beijing’s 4 trillion Yuan ($585 billion) stimulus planned break down.

The economist said that he expected a development in overall domestic demand, determined in part by real estate markets.