Effective macro-economic controls can ensure China maintains stable and rapid economic growth despite unfavorable domestic and international conditions, Fan Jianping told China Securities Journal.
Controlling inflation was one of the main tasks of macro-economic controls in 2008. The August CPI of 4.9 percent year-on-year represents a drop of 3.8 percent since February. Inflation has basically been brought under control and measures taken will continue to be effective through 2009.
The world economy is likely to move into recession in 2009. So the major world economic powers should give priority to anti-recessionary rather than anti-inflationary policies. The subprime financial crisis is worsening and is threatening the real economy across the globe.
Fan said only by deepening reforms can China maintain economic growth; China needs to undertake structural transformation and optimization, take proactive fiscal measures and adopt a prudent monetary policy in 2009, remaining alert to any renewed threat of inflation.
Fan Jianping is dean of the Economic Forecasting Department at the State Information Center.
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(China.org.cn by Fan Junmei, September 24, 2008)