Slowdown But not Downturn !
September 4, 2008 · Print This Article
Inflation topping at %8.7 at February, snowstorms hitting Guandong , earthquakes devastating Sichuan, Amerikan credit crisis cutting orders, tight monetary policy tightening credits,and finally global economic slowdown… all those touch the brakes of the chinese economy. But still there is no gloomy picture, here is why :
CHINA is experiencing a temporary economic slowdown rather than a downturn, said Cheng Siwei, former vice chairman of the Standing Committee of the National People’s Congress, raising the prospect that adjustments might be necessary.
“The domestic inflation, severe winter weather, devastating earthquakes and the weakening global economy in the first half year have pushed the country’s economy to the edge of decline, but it is getting better,” Cheng said in a China Central Television talk show aired on Tuesday night.
He said according to the business cycle theory, an economy develops in cycles, and 10 years constituted a cycle for China’s economy.
The decade from 1990 to 2000 saw a near 14-percent growth in gross domestic product in the first two or three years and then a slowdown to about 8 percent in the remaining period. Economic growth continued rising from about 7.3 percent per annum in 2001 to 11.4 percent in 2007.
The estimated GDP growth rate in 2008 may slow to around 10 percent. Worry over a downturn for the Chinese economy reemerged.
However, he didn’t agree with the view that the Chinese economy faced a watershed, noting that this year’s growth rate, compared with 2007, meant only a temporary slowdown lasting two or three years.
The country’s decision makers now face the problem of combating inflation while at the same time boosting economic growth in the rest of the year to ensure a steady and fast economic development.
Source:China Daily
Tags: urban parking, China, GDPRelated Posts:
Comments
Got something to say?
You must be logged in to post a comment.