Home>News Center>China
       
 

Nation's GDP to expand 8-9% in 2006
(Reuters)
Updated: 2005-12-22 20:02

China's gross domestic product growth is likely to slow next year to between 8 percent and 9 percent, Yao Jingyuan, chief economist at the National Bureau of Statistics, said on Thursday.

Officials expect GDP growth this year to come in just below the 9.5 percent clip recorded in 2004 and 2003.

Yao told an economics forum that urban and rural consumption would be an increasingly important driver of growth in 2006 as the government focused on raising incomes of low-wage earners, but that investment was likely to remain the main engine.

Yao said China's needs as a developing country would make it very difficult to reduce annual growth in fixed asset investment to below 20 percent.

Fixed investment for all of 2005 was likely to increase by between 25 percent and 26 percent, Yao said. He did not specify which measure of investment he was referring to.

Urban fixed investment in the first 11 months rose 27.8 percent on the year. Total fixed investment, a broader category measured quarterly, grew 26.1 percent in the first nine months.

Yao said China's expanding trade surplus -- set to reach $100 billion this year, more than triple last year's $32 billion -- would generate pressure for the yuan to rise and could lead to increased friction with the country's trading partners.

Given this week's GDP revision showing the economy is 16.8 percent bigger than previously thought, it would be reasonable for the government to revise up its $2,500 target for per capita gross domestic product by 2020, Yao said.

Per capita income in 2004 was already $1,486, instead of $1,272 before the revision.

Yao offered no new target but said policy makers would aim to keep GDP growing between 8 percent and 10 percent a year in future.

Services accounted for 93 percent of the increase in estimated output. Because prices of services are rising faster than goods prices, some economists have said the statistics bureau might have to revise up its estimates of inflation.

But Yao played down such concerns, noting that the government regulated the prices of a host of services such as water, power and gas.



Serving Taiwan passengers in traditional attire
Jinmao Tower surrounded by heavy smoke
Up in flames
  Today's Top News     Top China News
 

Japan FM's 'China threat' remarks criticized

 

   
 

Reforms of SOEs will push ahead next year

 

   
 

Optimism increases in epidemic battle

 

   
 

China to embark on road of peaceful rise

 

   
 

China and OPEC start energy dialogue

 

   
 

China becomes a net auto exporter

 

   
  China: Economic development not a threat to anyone
   
  Cross-Straits relations took new turn in 2005: experts
   
  Nation's GDP to expand 8-9% in 2006
   
  Beijing to offer free nine-year compulsory education
   
  China's Peaceful Development Road
   
  White paper: China pursues a peaceful rise
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  News Talk  
  It is time to prepare for Beijing - 2008  
Manufacturers, Exporters, Wholesalers - Global trade starts here.
Advertisement