China not worried over economic slowdown
0 Comment(s)
Print
E-mail
People's Daily, November 28, 2011
The World Bank has lowered its forecast for China's GDP over the next two years in its biannual economic update on East Asia and Pacific. The report shows that China's GDP growth rate is expected to stand at 9.1 percent in 2011 and slow to 8.4 percent in 2012.
Domestic economists generally agreed with the World Bank's judgment on China's economic slowdown. Research institutions and experts mostly said that the probability that China's economic growth will slow over the next two years is very high.
Economic slowdown is an inevitable choice
The World Bank said that China's economic growth would further slow because of periodic economic adjustments and China's reduced reliance on investments, exports and the manufacturing sector due to its structural economic adjustments.
Wang Shuguang, general secretary of the Financial Research Center under Peking University, said that the economic slowdown is associated with overall economic regulation. The tight monetary policy as the theme of macroeconomic regulation over the past two years is also a key factor.
Economic slowdown to benefit China's sustainable development
"If the economic slowdown has resulted from macroeconomic regulation, it is not worth worrying about and will be beneficial to China," said Wang. Moderate economic slowdown is because of the combination of China's proactive economic regulation and the changes in market demand and will promote China's economic transition.
Wang believes that the average annual economic growth rate of higher than 10 percent seen over the past 10 years has generated huge wealth as well as many problems. The rapid economic growth at the expense of the environment has placed the country under growing environmental and resources pressure and is not conducive to ensuring long-term sustainable development.
Furthermore, rapid growth has also caused imbalances in many fields, such as the economic structure and income distribution, which cannot be addressed if the country's economy continues to grow too fast.
Projected growth between 8 percent, 9 percent
"China's economic growth rate next year is expected to stay above 8 percent. Optimistically speaking, it may be around 9 percent," said Wu Xiaoling, deputy director of the Financial and Economic Committee under the National People's Congress.
China will likely continue to grow faster than most other economies next year despite a possible economic slowdown. The country's main task next year will be to address the economic imbalances rather than maintaining rapid economic growth.
Although the global economic recovery will take a long time, China still has great growth momentum and a broad space for development. Furthermore, the country has not completed industrialization or urbanization and has the desire and ability to carry out major reforms.
Go to Forum >>0 Comment(s)