China's economy likely to expand 8.1% in 2012

China's economic growth will expand to around 8.1% in 2012 and edge up to 8.7% in 2013, an economist has predicted.

Stephen Green, economist with Standard Chartered Bank (China), said the country's manufacturing activity is far from optimistic despite the nation's Purchasing Managers Index (PMI) for the manufacturing sector rose slightly in January.

The China Federation of Logistics and Purchasing recently said that China's PMI rose to 50.5% in January, the highest level since October. The PMI stood at 50.3% in December, and 49% in November.

Xinhua quoted Green, as saying that the manufacturing sector is currently going through contraction.

According to the report, Green sees China's gross domestic product (GDP) growth to be the slowest in the first quarter and gradually pick up later on, bringing the growth rate for 2012 to around 8.1%.

China's economy expanded by 9.2% in 2011 from a year earlier and 8.9% year-on-year in the fourth quarter, according to the National Bureau of Statistics (NBS).

The quarterly growth was the slowest in ten quarters.