The Chinese economy is set to grow 8 percent in 2002, predicted the National Bureau of Statistics.
It said that the speedy growth of China's economy this year was fuelled by booming exports and the central government efforts to stimulate domestic demand.
Preliminary figures from the bureau suggest that the country's gross domestic product (GDP) reached 10.2 trillion yuan (US$1.23 trillion) in 2002, an increase of 8 per cent from the previous year.
In 2001, GDP growth was 7.3 per cent. The government had aimed for 7 per cent growth this year.
But the 8 per cent expansion began to be expected in recent months as the economy gathered steam this year, growing 7.6 per cent in the first quarter, 8 per cent in the second and 8.1 per cent in the third.
"The stable pick-up in economic development continued in the fourth quarter,'' said Zhu Zhixin, head of the statistics bureau.
The three engines -- fixed investment, consumption and overseas demand -- have become the motor forces of this year's economic development, Zhu said.
During the first 11 months of 2002, China's fixed assets investment rose 23.4 per cent to 2.6119 trillion yuan (US$314.7 billion), and retail sales grew 8.8 per cent to 3.6506 trillion yuan (US$439.8 billion).
Surging exports, which were fuelled by the recovery of world economy, grew 21.6 per cent to US$293.7 billion during the period.
"Looking into the future, the world economic environment remains uncertain and the domestic economy still face many major problems, but all in all, there are more chances than challenges, the national economy is expected to maintain its excellent development momentum in 2003,'' Zhu said.
An earlier report from the Macro Economic Research Institute under the State Development Planning Commission said the Chinese economy would grow by 7.6 to 7.8 per cent in 2003.
The central government's goal to develop a well-off society in an all-round way over the coming two decades will greatly increase people's confidence in the future, the report said.
The new government will also try its best to push forward the country's economic reform and opening up process, it said.
In 2003, the country will continue to carry out a pro-active fiscal policy and sound monetary policy to stimulate domestic demand and boost the whole economy.
Meanwhile, the positive effects brought in by the country's accession to the World Trade Organization (WTO) will continue in 2003.
Foreign investors will accelerate their involvement in the Chinese market.
However, the Chinese economy continued to face deflationary pressure, with consumer prices falling 0.8 per cent nationwide during the first 11 months compared with the same period of 2001.
Zhang Xueying, a senior economist with the State Information Centre, said the government should pay more attention to the negative effects of continuously falling prices.
Measures should be taken to both increase consumption and explore new consumption areas, he said.
Meanwhile, the government should try to increase farmers' income and improve farmers' living conditions and consumption environment.
The government should also try to increase urban employment and find more jobs for laid-off workers.
(China Daily December 31, 2002)
