From an earlier 9.4 per cent projection, the Chinese Academy of Social Sciences (CASS), a government think tank, slashed on Wednesday to 9.2 per cent its forecast of China's GDP for 2011, citing the current sluggish economic recovery worldwide coupled with the country's tight monetary policy as well as withdrawal of stimulus measures on consumption as culprits for the growth slowdown.

The latest calculation is 1.2 percentage points lower than that of 2010, while CASS maintained growth projections for 2012 to hit at only 8.9 per cent overall. Still, 2012's estimated growth rate is still within a "reasonable growth zone" showing stable and relatively fast economic development.

"The country's GDP growth rate in 2012 will be reached if there is no significant deterioration in the global economic and political conditions and no serious natural disasters nor other problems at home," CASS said.

Taming inflation and steadying commodity prices remain China's priorities of macro-control for the time being, according to CASS.

CASS urged China should already brace for its economic growth to be threatened by pessimistic exports, noting it will take the world 10 years or more to recover from the current financial crisis, which has affected the world economy since 2008.

China will experience a decline in its exports following the slow global economic recovery. But this offers a chance for China to shift its economic growth mode to a more consumer-driven method rather than the current export-driven demand scenario.

China's consumer price index (CPI), a major gauge of inflation, will grow in 2012 by 4.6 per cent, down from the 5.5 per cent the CASS forecasted for 2011.

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