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Economist: Post-Olympic downturn unlikely

(Xinhua)
Updated: 2008-06-17 22:27

The phenomenon was mainly caused by a dramatic investment increase at the pre-Olympic stage, accompanied by a boom in consumption and revenues. But the investment and consumption plunged following the Olympics while the host city would have to shoulder the heavy burden of maintaining idle sports venues.

Fan, however, cautioned that the Chinese economy might still face new challenges, domestically and globally, and needed further policy adjustment in September or October or even later this year.

"China is economically a developing country under transition. The economy has its own problems," he said.

On the other side, he said the Chinese economy would face a new international economic situation -- the US credit crisis was still far from over and its negative impact was still coming out and prices for oil and grain were continuing to rise on the international market.

"But these have nothing to do with the Olympic Games.... Hosting of the Games will push forward economic development in China by helping restructure industries and integrate the Chinese economy into the global market," he added.

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