Economy Goes Well, Say 100 Chinese Economists

Zhao Nan

China's economy is expected to keep a good momentum and continue on the fast lane, asserted 100 most famous Chinese economists who were recently surveyed by China's Prosperity Monitoring Center.

And, 86.7 per cent of the economists said the country's gross domestic product (GDP) would witness a faster growing pattern in the second half of the year, thanks to an improved macro economic trend.

They based their favorable estimation of the economy on increasing domestic and overseas consumption of Chinese products, stable monetary and fiscal situation, and increasing confidence of the residents on the national economy.

Domestic consumption will rise by a big margin in the second half of the year, a majority of the experts reached the consensus. According to the survey done by the center, which is administered by the National Bureau of Statistics, 68.9 per cent of the economists predict China's gross retail sales for 2000 will grow at 8-10 per cent.

And, 20.8 per cent forcast the rise at 6.9-7 per cent, 10.3 per cent say the rise at around 11-12 percent.

With regard to investment, the economists think that the fixed assets investment will also pose rapid growth. Nearly 50 per cent of the surveyed economic experts predict the speed at 8-9 percent, and, 25 per cent see a 10 per cent rise.

The economists predict the deflation cycle, which has been hurting China's economic development in the past few years will ease, thanks to increasing domestic demand, widening export, restructuring of the industrial products and dropping summer grain yield. More than 70 per cent the economists say China's price will rise on the level of last year, ending a consecutive 5-year negative price rise.

As to problems in Chinese economy, 80 per cent mention the sluggish domestic demand, 60 per cent refer to insufficient employment opportunities, and others point out the unbalancing economic structure, inefficient enterprises and deflation.

More than 73 per cent of the surveyed economists approve the current monetary policy, with 20 per cent think the central bank ought to further loosen its credit issuance.

(China Daily)



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