Experts Predict Sound Economic Growth for China
BEIJING (Oct. 5) XINHUA - China will continue to enjoy a rapid and
healthy economic growth this year and next, with the GDP for this year
around 10 percent, rising to 10.3 percent in 1997.
This was predicted by a panel of experts from the Chinese Academy of
Social Sciences and the State Statistics Bureau.
The manufacturing sector and the service sector will also grow in a pace
similar to that of the GDP during the two years, announced the experts
today in Beijing.
They forecast that the whole society's fixed assets investment will grow
at a nominal rate of 18 percent, or a real rate of 10.7 percent, to 2,
350 billion yuan this year, with the investment rate standing around 34
percent.
In 1997, the total fixed assets investment will rise more than 19
percent nominally, or 12.5 percent in real terms, to 2,800 billion yuan,
with the investment rate remaining at 34 percent.
The experts said in a report that China's inflation will fall further
this year and next, with the retail price index growing and price rise
level around seven percent and 6.7 percent respectively.
Last year, the retail price index grew 14.8 percent over 1994. The
experts claimed that the Chinese economy has basically achieved a "soft
landing" thanks to a tight monetary policy adopted since the second half
of 1993.
With the lowering of interest rates twice this year, many localities
felt a strong urge to launch new construction projects, they noted. They
suggested that the Central government continue to keep a tight rein on
fixed assets investments, which are in danger of running rampant.
"On a profounder level, the quantitative mode of economic growth has not
been efficiently transformed (into the qualitative mode of economic
growth), and there still exist severe problems, such as wasteful
allocation of resources, poor efficiency and management," said the
report.
"In addition, a risk investment system has yet to be established." "It
poses a tremendously gigantic task to establish a system suiting the
needs of a socialist market economy."
The report called on the government to strengthen supervision of the
construction market.
Copyright 1996 Xinhua News Agency (via Comtex). All rights reserved
EXPERTS PREDICT SOUND ECONOMIC GROWTH FOR CHINA, Xinhua News Agency, 5 Oct 1996.
The "EXPERTS" no less- and as I own a few china stocks, can I add- "lets get ready to rumble". Tony |
