China's economy to grow 7.5 pct this year: ADB

Though several key activity indicators of Chinese economy weakened in the third quarter, the Asian Development Bank (ADB) has stuck to its forecast that China's GDP will grow 7.5 percent in 2014 and 7.4 percent in 2015, with lower inflation.

The ADB released its forecast in its annual economic bulletin, Asian Development Outlook 2014 in Beijing on Thursday, about six months after it first released the forecast.

"Steady consumption and rising external demand will support economic growth," said Jurgen Conrad, head of the economics unit of ADB's China office.

He said that the Chinese economy is still on track to hit the central government's targets, despite a slowing property sector, tightening credit growth in the early part of this year and a shrinking workforce.

As moderating economic activity restrains price pressure, China's consumer price inflation is forecast to remain subdued at 2.4 percent on average, well below the government ceiling of 3.5 percent, the report said.

Inflation may accelerate toward the end of the year as administered prices are increased in line with the government's plans to reform prices of energy, water, and other utilities.