China's economy to gain momentum in 2nd half

BEIJING - China's economy will grow at a faster pace in the latter half this year on recovering export, rising investment and expanding housing market, a report released on Sunday by a Beijing-based research center said.

"We are confident that China will see a U-shaped economic recovery in 2012," the Centre for China in the World Economy under the Tsinghua University said in the report on the country's economic situation.

The CCWE sees the country's gross domestic product to grow by 8 percent in the first half and by 8.4 percent for the whole year.

Li Daokui, head of the CCWE and a former central bank advisor, said that the economy is "showing healthy signs of stabilization".

In the first five months, China's exports rose 8.7 percent to $774.4 billion. The year-on-year export growth rose from 4.9 percent in April to 15.3 percent in May, according to the General Administration of Customs.

"The negative effects of slow export growth are gradually declining," the research center said.

The CCWE also forecast that China's fixed asset investment will recover as of the second quarter. The growth rate will be around 22 percent for the first half and 22.6 for the whole year, the center said.

The housing market has seen rising deals and prices since the beginning of this year, showing the sector is recovering. These changes will promote investment in the sector and further contribute to economic growth, the CCWE said.