China's economy to grow by 9.4 pct this year (AFP) Updated: 2005-12-04 19:21
China's economy will likely grow by 9.4 percent this year, and will see
continued fast growth next year, Ma Kai, the State Development and Reform
Commission's (SDRC) minister, has been quoted as saying by state media.
Chinese banknotes on display in Beijing.
[AFP] |
China's economy has been growing at an average rate of 9.5 percent in the
past two years. Its gross domestic product ( GDP) grew 9.4 percent in the first
nine months of 2005.
Speaking following a national gathering of top leaders and economic
policy-makers, Ma said fixed-asset investment for the whole year is expected to
increase by 25 percent, while retail sales will increase by 13 percent.
This year, the main inflation index, the consumer price index, will rise by
no more than 2.0 percent, the Beijing Morning Post cited Ma as saying.
Next year, the government will aim for fast, stable growth for the Chinese
economy, but will make more efforts to restrain overproduction to avoid
overheating in several sectors, he was cited as saying by Xinhua news agency.
"More efforts will be given to addressing the challenges brought by
oversupply in some industrial sectors," said Ma.
He warned that oversupply in the steel, coke and auto sectors are threatening
jobs.
"If we don't effectively address the problem immediately, a large number of
companies will go bankruptcy and many people lose their jobs," said Ma.
Statistics from his commission showed that in October, steel prices fell as
low as those in 2003. Prices of some steel products are even lower than the
production cost, Xinhua said.
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