PBOC Adviser Chen Sees China’s 2013 Economic Growth Exceeding 8%

China’s economic growth is likely to exceed 8 percent this year, with inflation becoming a potential concern in the second half, a central bank academic adviser said.

New yuan lending above 9 trillion yuan ($1.4 trillion) for the year will be “enough to support” that level of growth, and monetary policy makers may become more cautious in the second half, Chen Yulu, president of Renmin University of China, said today in Beijing in brief comments after an event with France’s finance minister.

Chen’s forecast compares with median analyst projections for 8.1 percent growth in 2013 after 7.7 percent expansion in 2012, which would mark the slowest pace since 1999. UBS AG estimates new local-currency loans totaled about 8.3 trillion yuan last year.

Inflation won’t be an issue in the first half of the year, said Chen, who is also a finance professor at Renmin. He has been an adviser to the People’s Bank of China since March.

--Zhou Xin. With assistance from Kevin Hamlin in Beijing. Editors: Scott Lanman, Sunil Jagtiani

To contact Bloomberg News staff for this story: Zhou Xin in Beijing at xzhou68@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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