Irrespective of the first four months’ mixed business data, some experts are still optimistic about the economy, Hong Kong Wenweipo reports.
According to the report, Li Daokui, director of Tsinghua University’s Center for China in the World Economy, points out that the decline in China’s economy has now stopped and it is demonstrating upward momentum. China’s GDP is likely to replace Japan by the end of this year to become the world’s second largest economy in absolute terms.
Also in the report, Macroeconomic Analyst Zhang Liqun with State Council’s Development Research Center expresses his confidence. Chinese GDP in Q1 this year registered 6.1 percent year-on-year growth, a further drop from Q4 2008, but with indications that this is the low-point and that recovery has begun. According to his analysis, the boost in consumption, increased investment volume, and manageable decline in export growth all contributed to the reviving business outlook.
The Q1 business figures suggest a remarkable rise in the country’s gross market demand, Zhang Liqun argues. And given a market response time of three months, improved demand in Q1 suggests an overall revitalization.
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(China.org.cn by Maverick Chen, May 31, 2009)