Economic growth to continue By Fu Jing (China Daily) Updated: 2006-07-18 08:30
Economists believe that the country's faster-than-expected growth will
continue in the second half of the year, despite government efforts to slow down
development in some sectors.
"Slightly heated" was the phrase that the
World Bank (WB) used to describe the economy in the second quarter, after an
investment spree, loose credit supply, trade imbalance and price hikes of raw
materials led them to estimate growth of higher than 10 per cent.
The
year's total GDP growth is also likely to be around 10 per cent and exceed the
government's planned target of 8 per cent, said Zhao Min, an economist with the
WB China Office.
"We believe that China's economy is a little bit
heated, but during a transitional period China can and has released great
potential to achieve fast economic growth," Zhao told China
Daily.
China's economy can continue to grow at a "rational speed" of 9-10
per cent annually for some years to come, Zhao said.
Premier Wen Jiabao
said over the weekend that guarding against a rapid rise in fixed asset
investment while keeping economic growth at a relatively stable pace has topped
his work agenda.
He said credit and land supply policies should be
strictly implemented and efforts must be made to limit the growth of
energy-consuming and polluting industries.
The National Bureau of
Statistics and the National Development and Reform Commission (NDRC) will
publish half-year data on China's economic and social development this
week.
The State Information Centre, a research organization affiliated to
National Development and Reform Commission, suggested an interest rate hike in
the second half of this year and higher reserve requirements for commercial
banks.
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