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In its latest Economic Outlook, the Organisation for Economic Co-operation and Development said that while many of its 34 members will continue to be constrained by fiscal consolidation and weak credit markets, “a moderate cyclical upturn is getting underway in China, while a more hesitant pick-up in growth is seen to take place in India”.

Nevertheless it now expects China — the world’s second largest economy and which is not an OECD member — to post in 2013 growth that is “subpar for the second consecutive year” at just 7,8 percent.

China’s economy grew by 7,8 percent in 2012, its slowest pace in 13 years, in the face of weakness at home and in key overseas markets.
Recent data has pointed to weakness in the Chinese economy with manufacturing activity contracting in May for the first time in seven months, according to a key survey.

The new forecast is a sharp cut from the 8,5 percent the OECD had in its previous semi-annual Outlook report in November.
But “given strong credit growth and the support provided by higher public social and infrastructure spending, a return to robust, albeit unspectacular, growth appears likely during the rest of this year and the next”, said the OECD. — AFP.