SEB’s economists have raised their forecast for China’s GDP growth to 8.5 per cent in 2012 and 8.7 per cent in 2013 following growth of 8.9 per cent in the fourth quarter of 2011. The economists say that as long as the euro zone debt and banking crisis does not spread globally there’s a chance growth could exceed the forecast. Still, with slower Chinese GDP growth than previously and lower inflation, yuan appreciation will decelerate. SEB expects a USD/CNY exchange rate of 6.10 at the end of 2012.