By Tang Danlu
BEIJING, Aug.6 (Xinhuanet) — China’s economy is to see a continued slowdown and the government will implement more economic stimulus in the future.
|(Source: China Daily)|
China’s GDP expanded at 7.6 percent in the second quarter of 2012, the first time that the world’s second largest economy’s growth has fallen below the 8-percent mark since the fourth quarter of 2009.
To boost the currently fatigued economy, China’s top leaders reaffirmed that they will underline stable economic growth and adhere to a proactive fiscal policy and prudent monetary policy to counter the current economic hardships.
The ongoing pace of economic growth is within expectations, but the external environment remains grim and poses difficulties and challenges, according to a newsletter released after a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee that was presided over by President Hu Jintao on Tuesday.
“We should observe the problems and risks, strengthen risk awareness and make good preparations,” read the newsletter.
“We should remain firmly confident in our efforts to promote steady and relatively fast economic growth,” it said.
Moreover, most of leading Chinese economists also expressed high confidence in an optimistic economic outlook in the second half of this year.
A quarterly survey, conducted by the China Economic Monitoring and Analysis Center under the National Bureau of Statistics, showed that 72 percent of 78 leading economists expected higher than 8 percent growth this year supported by further economic policies.
The continued low consumer price index (CPI), a main gauge of inflation, pushes the government to introduce more pro-growth measures, respondents thought.
The previous stimulus policies have shown their effects, the economic growth is expected to rebound gradually, but at a moderate pace, they added.
To buoy the economy, China has adopted a train of growth-spurring measures, including lowering banks’ reserve ratios and interest rates, subsidizing energy-saving household electrical appliances and speeding up approvals for major construction projects.
Many economists even predicted that the CPI may drop to 1.7 percent in July from June’s 2.2 percent, to reach its lowest level in 30 months.
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