Saturday, November 17, 2012

China confident real gdp growth of 7.5% in 2012

World Economic outlook - China real gdp growth rate 2012 : CHINA is confident of achieving its target economic growth of 7.5% this year. The head of the Chinese National Development and Reform Comm­ission (NDRC), which approves major projects and strategises policies to maintain the country’s economic vitality, said they did not fear that the economy would plunge.

“Our economic growth was at 8.1% in the first quarter of the year, 7.6% in the second quarter and 7.4% in the third quarter.

“So, the average growth in the first three quarters was 7.7%,” said NDRC chairman Zhang Ping at a press conference in Beijing last week.

“Of course, many people are worried and ponder whether China’s economy would slump like in 2008 due to the great impact of the global financial crisis.

“The slowdown trend is caused by many factors, the first being our own doing.”

He said the Chinese government intentionally slowed its economic growth below last year’s 8% by tightening fiscal and macro-economic policies.

Earlier this year, the government set the 7.5% target to ensure a more sustainable growth and step up its efforts to transform its economic development model.

“We have gone through 30 years of reform and opening up, all while maintaining a fast paced growth.

“But in reality, we have encountered a lot of conflicts and that’s why now our main work will be focused on economic transformation,” he said.

Zhang Ping noted that other factors, such as the US and Euro crises, had also contributed to the inevitable global economic slowdown even though some emerging economies were doing quite well.

For a huge nation like China with a population of 1.3 billion, there was a need to maintain a certain degree of economic growth but not too fast as it would probably contribute to inflation and other problems, he said.

“After making some minor adjustments and fine-tuning our policies, you can see that we have managed to keep a check on the downward trend of our economy after August.

“In August, our value-added ind­ustrial growth was 8.6% but in September it increased to 9.2% and in October 9.6%.

“Our retail sales volume of consumer goods was up from 13.2% in August to 14.1% in September and eventually 14.5% in October.”

Zhang Ping said China’s total volume of exports and imports also rebounded from a slip in August to record an increase of 6.3% and 7.3% in September and October respectively, while domestic investment rose up to 20.7% last month.

At another press conference, Sany Heavy Industry Co Ltd chairman Liang Wengen said the prospects of the global economy, especially China’s economy, was good and not only did his company experience little problems amid the slowdown, but it also registered seven billion yuan (RM3.45bil) in profit and tax in the first-half of the year.

“I recently read a newspaper report on the United States saying that they should not envy China as they had 5,800 airports, whereas China had only 300 airports.

“The roads in the United States are double that of China and its railways are three times more than in China.

“But the population of China is 4.5 times more than that of the United States.

“From this perspective, China still has plenty of room for development and Sany Heavy Industry has an immense potential for growth in China, not to mention the support we enjoy from the international market,” he said.

He added that Sany Heavy Industry was taking the lead in transforming and upgrading its economic structure by investing more in research and development and making the company more global.

“We will need to continuously improve ourselves to be on par with other international players.

“This year, our revenue from the international market stands at 10 billion yuan (RM4.8bil), which is 15% of our sales.

“We hope that in the next five years, our overseas sales will make up 40% to 50% of our total sales,” he added.

During the 18th National Con­gress of the Communist Party of China held over the past week, the party outlined, for the first time, its goal to double the country’s gross domestic product (GDP) and ach­ieve a moderately prosperous society by 2020.

Liang said that by that time, China would have reached a GDP of 100 trillion yuan (RM49 trillion) and such projected growth was rather fast with an average growth of seven point something percent every year.

He said he believed that if the government and corporate sector could do better in its economic opening up and transformation, China would have no problem achieving the goal.

Zhang Ping said China was on track to fulfil its 12th Five-Year Plan (2011-2015), which primarily emp­hasises the need for sustainable growth, economic structural changes and boosting domestic consumption.

“We will carry out the new tasks put forward by the party and step up our efforts to ensure that our present and long-term plans achieve that.

“We will expand our development horizons, stress more on the quality and returns of economic development and realise our vision to be a moderately prosperous society by 2020,” he said.

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