Economy to maintain fast, stable momentum By Wang Ying (China Daily) Updated: 2004-12-04 08:39
China's economy is expected to maintain stable and rapid growth in 2005, said
Zheng Jingping, spokesman for the National Bureau of Statistics of China.
Zheng made the prediction when addressing the 2004 Annual Economic Conference
of China IT Industry that opened on Friday in Beijing.
China's economic development has ushered in a rapid growth period, which is
expected to continue in 2005, according to Zheng.
Contributors for the vibrant momentum are the urbanization trend that comes
with fast economic growth, the increasingly thriving chemical industry, and the
burgeoning IT industry that serves as an impetus to upgrading traditional
industries and trades, Zheng explained.
China is actively involved in international co-operation, and its
concentrated efforts on industry internationalization have also contributed to
economic success, Zheng said.
According to statistics, China's foreign trade volume climbed 34.35 per cent
from January to October 2004 over the same period last year, with a US$11
billion trade surplus.
During the 10 months, the country's contractual foreign investment accounted
for US$119 billion, up 34 to 35 per cent year-on-year, and actual foreign
investment totalled US$53.8 billion, up 24 per cent, exceeding total actual
foreign investment in 2003.
The world's economic development environment in the mild growth period is
also conducive to China's robust economic growth in 2005, and the global economy
will continue on its recovery track, Zheng said.
The International Monetary Fund (IMF) estimates the world's economy in 2005
will maintain a 4.3 per cent growth rate, slightly lower than the expected 5 per
cent this year, but still topping the average increase of 3.5 per cent for 2000
to 2003.
Zheng said the central government will continue sticking to rational
macro-economic control measures, focusing on a scientific development
perspective that fits China's particular circumstances and has strategic and
far-reaching significance to create a preferential policy environment for
economic development.
The Chinese Government's macro-economic controls have shown obvious effects
in the country's 2004 economic growth, according to Zheng.
Statistics show the country's financial revenues jumped by 24 per cent for
the first 10 months this year, and enterprises' profits increased by 40 per
cent.
More fixed assets investment, backed by revenue increases in 2004, will
further push China's economic growth in 2005, together with demands from foreign
trade and domestic consumption, said Zheng.
The Consumer Price Index (CPI) increased by an average 4.1 per cent during
the first 10 months of 2004, and is expected to continue growing next year, due
to soaring real estate prices in China. The Influences of surging oil prices in
the international market and other possible new price hike factors will also
have an impact, said Jiao Jinpu, deputy head of the Research Bureau under the
People's Bank of China, who is also attending the annual economic conference
sponsored by the Ministry of Information Industry.
Problems that may curb China's 2005 economic growth still exist, Zheng noted,
including China's current economic structure and economic growth mode that do
not fully accord with market economy rules.
As for short-term obstacles, the agricultural industry's further development
still faces difficulties, reductions on the scale of fixed-asset investment to
avoid inflation still could see possible rebounds, and how the government
successfully copes with the situation after China's World Trade Organization
grace period remains uncertain, said Zheng.
