China's economic growth is set to continue to slow this year and gradually become stable. Next year, it will grow at a reasonable, according to a paper published by the Chinese Academy of Social Sciences. The country’s top think tank says it will grow at a reasonable rate next year.

A paper published by the Chinese Academy of Social Sciences forecasts that GDP this year will come in at 9.2 percent, down 1.2 percentage points last year’s growth. That’s due to the slowing world economy and lower consumer demand. If the global economy doesn’t worsen and there are no major natural disasters in China in 2012, it’s predicted GDP growth will reach 8.9 percent.

This year, inflation has proved a major headache for the nation’s policy makers. Though it has eased in recent months, CPI rose 6.5 percent in July, the highest since 2009. According to the report, annual CPI growth for 2011 overall is expected to be 5.5 percent.

Li Xueshong, analyst from Chinese Academy of Social Sciences said: "In 2011, we have always set macro economic control as our top priority. We have seen effects, and the growth of commodity prices have eased. "

Maintaining steady prices is not only beneficial to consumers, but also a key factor for maintaining fast and steady economic growth, especially for the country’s small and medium sized enterprises. Overall, the report expects consumer prices will likely rise 4.6 percent next year.

In addition, its expected China’s GDP per capita will reach 6000 U.S dollars by the end of China’s 12th 5 year plan and reach 12 thousand U.S dollars by 2020. As average income continues to rise, the adjustment of industrial structure need to catch up to rearrange the limited resources. This indicates the agricultural labour force is likely to continue to decrease.

Chen Jiagui, economic analyst from Chinese Academy of Social Sciences said: "Everytime the economy slows, the most heavily affected are farmers. Many of them rely on exports, which are dependent on global market demand. As we know it is not at its best shape now."

There are certain limitations as well. Even though more residents from rural areas can now freely work and reside in the cities, the household registration system is still blocking them from many social benefits such as free education for their children.