BEUING. Oct 9: China's gross domestic product this year is expected to grow by about eight per cent, accompanied by negative inflation, the official Xinhua news agency said, reports AFP.

It quoted an autumn report of the Chinese Academy of Social Sciences as saying agriculture will grow by 3.2 per cent, manufacturing by 9.2 per cent and services by 8.3 per cent.

Faster economic development is expected in 1999. with 8.6 per cent growth, the report added.

Fixed assets this year will grow by 16.3 per cent over 1997 to 2.88 trillion yuan and in 1999 it will be 3.33 trillion yuan up 14.5 per cent, it said.

There will be negative growth in retail prices this year, but it will return to 1 7 per cent next year, with the implementation of a more active financial policy and growing domestic demand, the report said.