China's economic growth set to slow in 2012

China's economic growth continues to slow this year. The country's top think tank says it will grow at a reasonable rate next year. The paper indicates that the nation’s annual GDP for 2012 is set to reach 9.2 percent on average, down 1.2 percent than that of 2011. That’s due to the slowing world economy and lower consumer demand. If the global economy doesn’t worsen and there are no major natural disasters in China in 2012, it’s predicted GDP growth will reach 8.9 percent on average. Even though the growth rate is slowing, experts say it’s still within a steady and relatively fast growth range. This year, the nation’s consumer price index have stayed high, at over 5 percent, except for January and February during which it remained at 4.9 percent. In July, CPI rose 6.5 percent, the highest since 2009. According to the report, annual CPI is likely to reach 5.5 percent. Maintaining steady prices is not only beneficial to consumers, but also a key factor for maintaining fast and steady economic growth, especially for the country’s small and medium sized enterprises. Overall, the report expects consumer prices will likely rise 4.6 percent next year.