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CHINA / National

Economy growth expected to continue
By Fu Jing (China Daily)
Updated: 2006-07-18 06:53

Economists believe that the country's faster-than-expected growth will continue in the second half of the year, despite government efforts to slow down development in some sectors.

Labourers work on the scaffoldings at a construction site in Nanjing, capital of east China's Jiangsu province July 13, 2006.
Labourers work on the scaffoldings at a construction site in Nanjing, capital of east China's Jiangsu province July 13, 2006. [Reuters]
"Slightly heated" was the phrase that the World Bank (WB) used to describe the economy in the second quarter, after an investment spree, loose credit supply, trade imbalance and price hikes of raw materials led them to estimate growth of higher than 10 per cent.

The year's total GDP growth is also likely to be around 10 per cent and exceed the government's planned target of 8 per cent, said Zhao Min, an economist with the WB China Office.

"We believe that China's economy is a little bit heated, but during a transitional period China can and has released great potential to achieve fast economic growth," Zhao told China Daily.

China's economy can continue to grow at a "rational speed" of 9-10 per cent annually for some years to come, Zhao said.

Premier Wen Jiabao said over the weekend that guarding against a rapid rise in fixed asset investment while keeping economic growth at a relatively stable pace has topped his work agenda.

He said credit and land supply policies should be strictly implemented and efforts must be made to limit the growth of energy-consuming and polluting industries.

The National Bureau of Statistics and the National Development and Reform Commission (NDRC) will publish half-year data on China's economic and social development this week.

The State Information Centre, a research organization affiliated to National Development and Reform Commission, suggested an interest rate hike in the second half of this year and higher reserve requirements for commercial banks.

"All possibilities will become reality," said Lin Yueqin, researcher with Economics Research Institute under Chinese Academy of Social Sciences, anticipating change after the State Council holds its half-year economic meeting this month.
Page: 12

 
 

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