Jan. 13 - China's GDP growth will likely slow to 8.7% in Q4, reinforcing the case for further monetary easing, while India's headline inflation is seen falling to 7.5% in December. Tessa Dunlop reports.
Chinese swimmers aren't the only ones feeling the chill this winter. Growth in the world's number-two economy is cooling down, with GDP expected to hit a two-and-a-half year low in Q4. Economist Glenn Maguire though, says growth won't slow much further this year. (SOUNDBITE) (English) FOUNDER, PURPLE PATCH ECONOMICS, GLENN MAGUIRE, SAYING: "It's a transition year to a new generation of leaders of the communist party, and come hell and high water, the Chinese economy is not going to slow below 8% percent as a result of that". December's soft inflation numbers have convinced the market that Beijing will further ease monetary policy. Most analysts polled by Reuters expect another cut to required reserve ratio before the upcoming lunar new year holiday. And house prices are likely to have fallen for a third straight month, putting the pressure on Beijing to fine-tune its property tightening measures. Over to India where the central bank will also assess the need for growth friendly policy. The RBI may find it has more scope for action if inflation slows to 7.5 percent as analysts expect. And major miners Rio Tinto and BHP release their last quarterly production report for 2011. Both expect strong iron ore output, defying concerns of slowing Chinese demand. And finally, the result of presidential elections in Taiwan. At stake is the island nation's relationship with mainland China. Tessa Dunlop, for Reuters in Hong Kong.