THE Asian Development Bank's (ADB) optimistic economic forecasts should make its ears burn.
In last year's annual economic outlook, the bank pronounced China's double-digit economic growth 'unsustainable'.
It predicted the economy would slow from more than 13 per cent in 1993 to 10 per cent last year, while inflation would drop from 14.5 per cent in 1993 to nine per cent by the end of this year. Wrong.
Inflation leapt to a post-1949 high, and the economy slowed only slightly to 11.8 per cent in 1994.
This year, the ADB has set itself up for more embarrassment by siding with official Chinese forecasts instead of economic reality.
Hailing the Chinese Government's tight credit - loose credit, macro-economic hyperventilation as sufficient to ensure 'a soft landing', the bank forecast 8.9 per cent economic growth and eight per cent inflation for next year.
But Beijing might not play along.
