Beijing, Aug 25: Analysts have warned that China''''s economic development is facing challenges amid worldwide financial uncertainties in the wake of debt default risk by some economies, including the United States and the European Union.

However, they have predicted that China's economy will maintain a relatively steady, high growth due to its maneuverable economic policy.

"The effect of high US sovereign debt is likely to reduce consumer demand, so China''''s exports may experience rapid decline in the coming months," the China Daily quoted People''''s Bank of China (PBOC) advisor Xia Bin, as saying.

He warned that the recent debt crisis in the United States signalled an ongoing economic downturn, which may depreciate dollar in the long- run.

Bin said the US' attempt to further increase money supply to stimulate economic growth, could adversely affect other countries, cause friction in the foreign exchange market and put pressure on the yuan.

Nomura Securities' economist Sun Chi predicted that China's inflation will be more persistent than expected in the coming months, which will force the country's central bank to maintain tight monetary policies.

He estimated China's Gross Domestic Product growth to be 9 percent for the whole year, as compared with 10.3 percent in 2010.(ANI)