UN report puts China's 2010 growth at 9.5%

Updated: 2010-05-06 16:03
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BANGKOK - A United Nations report released Thursday said that China will gain an economic growth of 9.5 percent in 2010.

The report titled "Economic and Social Survey of Asia and the Pacific 2010", an annual publication of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) provides the governments of the Asia-Pacific region - representing 62 percent of the world's population -- a roadmap towards a more inclusive and sustainable development path.

The Survey finds the outlook for 2010 has improved significantly, with the Asia-Pacific region developing economies forecast to grow by 7 percent, led by China of 9.5 percent and India of 8.3 percent.

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In China, the deceleration brought the slowest growth since the records of quarterly growth began in the 1990s, the report said. However, urban fixed-asset investment, which had increased by 26 percent during both 2007 and 2008, rose even more quickly -- by 31 percent in 2009 after the government responded with its fiscal stimulus package.

Household consumption also continued to grow, though retail sales growth decelerated from 22 percent in 2008 to 16 percent in 2009, it said. The pronounced rebound of 80 percent in the stock market brought recovery of all the ground it had lost due to the crisis, spurring growth to reach 8.7 percent in 2009.

Noeleen Heyzer, UN Under-Secretary-General and Executive Secretary of ESCAP, who presided over the launch of the Survey said in an interview with Xinhua that there is a downside risk which means that China should take into account the management of inflation, assets bubbles especially in the housing sector, as well as exchange rate issues.

"This is time for China, not only to rely on huge stimulus packages, but also to create sustainable growth which means investing in sustainable infrastructure, especially in rural areas to make sure that social protection is put in place," Heyzer said. "Therefore, China can create a more decent work for many people as possible."

Meanwhile, the Survey urged governments in the region to increase social spending to consolidate the region's stronger than anticipated economic rebound and to spur over the long term a fairer, more balanced, and sustained economic recovery.