A STATE Planning Commission recommendation on a moderate growth rate for next year is expected at a national planning work meeting to be convened in about a fortnight.
Sources in Beijing said economists at the commission would back a growth rate of nine per cent for 1995.
The authorities also have decided to restrict inflation to no more than 10 per cent, although many mainland economists predict next year's inflation rate will remain at 20 per cent. Inflation, at a record 27.7 per cent last October, has shown no sign of abating.
'Twenty-plus per cent inflation is a painful reality,' one source said. 'From the central Government's resolution, the leadership really wants to squeeze inflation to under 10 per cent.' The battle against inflation was high on the agenda of the National Work Meeting on the Economy which ended in Beijing last week.
Chinese sources said the Communist Party leadership had opted for a relatively cautious development strategy in view of persistent signs of the economy overheating.
They said the key to next year's development was in containing the scale of investment, particularly the accumulation of capital.
However, since China has come under heavy pressure to relax its tight money policy, the authorities are expected to announce selective loosening of credit to preferred sectors.