China´s economy in 2011 and 2012 will maintain a stable growth rate of 9.7 percent, lower than this year´s estimated 10.5 percent, according to the Organization for Economic Cooperation and Development (OECD).

It said China´s renewed buoyancy is projected to continue in 2011-2012, as rising domestic demand offsets a renewed slowdown in exports, stabilizing the current account surplus at around 5.5 percent of the economy.

China has already been listed as an enhanced engagement country of the OECD, which is considering accepting it as member. So far, a total of 33 industrialized economies belong to the organization.

In its latest World Economic Outlook, the OECD also said that acceleration in non-food prices is to be offset by an easing of food price inflation, resulting in the stabilization of inflation at slightly above 3 percent in China this year.

The OECD suggested the stability of the domestic economy would be enhanced if the exchange rate policy were more oriented to allowing an appreciation of the yuan against a basket of currencies.

The organization forecast world economic growth would slow to 4.2 percent in 2011 from 4.6 percent this year, before returning to a rate of 4.6 percent in 2012.

Source: China Textile Leader