China's economic growth will likely tumble to 7.9 per cent during the whole year of 2012, the Hong Kong-based investment bank Nomura International Ltd predicted.

According to the report, released on Monday, the most populous country of the world will see its economic growth tumbling steeply to 7.5 per cent and 7.6 per cent year-on-year in the first and the second quarter of next year respectively.

The investment bank's recent prediction is the most pessimistic prediction for China's economy. Last time it was in 1998 when China's economic growth had slipped below 8 per cent.

Zhang Zhiwei, chief China economist at Nomura International, said, "The sluggish growth will be clearly noticeable in the national economy as well as in peoples' ordinary lives in the first quarter of next year."

Mr. Zhang added that the country's economic growth was decreasing because of weak external demand and a cooling property market.

People's Bank of China's academic adviser Xia Bin said that China's economy was gradually moving from two-digit high-speed growth model to one at a comparatively lower level.

Xia advised that China should try all methods to expand domestic demand to tackle the looming tough economic conditions.