China's Economy to Grow 7.5%

China's economy is expected to expand 7.6 percent in 2013 and then edge down to around 7.5 percent in 2014, the State Information Center (SIC), a government think tank, has forecast.

The SIC advised the central government to set the economic growth target for 2014 at 7 percent in an effort to focus more effort on reform and adjusting the economic structure

It also advised maintainance of a proactive fiscal policy and prudent monetary policy.

The SIC said there may be more pressure to control consumer inflation in 2014 with the consumer price index (CPI) expected to rise 3.2 percent from 2013.

Housing prices may rise 5 percent in the coming year, defying government effort to rein in runaway prices, but a rapid decline in housing prices if local government debt is not properly handled cannot be ruled out.

China's economy grew 7.7 percent in the first three quarters of the year, keeping it on track to meet this year's target of 7.5 percent.