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.
(China Daily December 4, 2004)