Latest News:  
Beijing   Sunny    30 / 16 ℃  City Forecast

Home>>China Business

Growth rate should not take center stage in Chinese economy

By Luo Lan (People's Daily Overseas Edition)

10:00, April 29, 2012

Edited and translated by People's Daily Online

The growth rate of Chinese economy has been declining for five consecutive quarters. People are not only worry about this but also expect that the macro-economy can bottom out as soon as possible. Therefore, the discussion that when the Chinese economy will bottom out is getting hotter and hotter.

In particular, the discussion is further pushed to a new high after the Chinese Academy of Social Sciences recently released the report to lower the growth rate of GDP in 2012.

In this regard, experts pointed out that the focus of Chinese economy is not the "bottom out" and speed but how to seize the opportunity to prepare for adjustment of economic structure and improvement of economic quality.

Heated discussion

The Spring Report 2012 on China's Economic Prospects released by the Chinese Academy of Social Sciences on April 25 shows that the growth rate of Chinese economy will further decline in 2012. It is expected that the growth rate of GDP will be about 8.7 percent, a drop of 0.5 percentage points from 2011.

Then, people began predicting when the Chinese economy will bottom out.

Some analysts said that since the growth rate of industrial value added rebounded in March and the official Purchasing Managers' Index (PMI) also rebounded significantly, China's economy has bottomed out and it will begin to rise in the second quarter in 2012.

However, other analysts did not think so. Wang Jian, expert of China Society of Macroeconomics, said that the rebound of industrial value added growth rate can only show that the trend of economic downturn is straight but not folded. As long as there is no large adjustment and reform and the contradiction of overproduction is not resolved fundamentally, the trend of economic downturn will continue into 2013.

Some people said that China's economy will rebound in the third quarter. Zhang Zhiwei, chief economist of Nomura Securities, said that the 8.9 percent in the fourth quarter in 2011 and 8.1 percent in the first quarter in 2012 made the macro economist generally predict that China's economy has bottomed out and it will rebound in the third quarter in 2012. They believed that the factors supporting the rebound include the improvement of mobility, restoration of export environment and reverse of some industries.

【1】 【2】


Leave your comment1 comments

  1. Name

Xi Jen Kong at 2012-04-30141.166.143.*
This is a real revolutionary coup for economic liberty

Selections for you

  1. May Day demonstrations worldwide

  2. Alleged Taobao scandal stirs sensation

  3. Naval escort taskforce 171 makes port call, HK

  4. A visit to "the last Shangri-La"

Most Popular


  1. EU commissioner looks to increase investment
  2. Commodities trading a hurdle for global yuan use
  3. Relations reach new heights
  4. China opposes Philippine school in S. China Sea
  5. Top adviser's visit promotes friendship, cooperation
  6. Where does the world go from here?
  7. Panicky responses to shootings harm students
  8. ChiNext delisting policies ramp up risk for investors
  9. Motives behind Tokyo's claim to buy Diaoyu Islands
  10. Huangyan crisis hints long-term tensions

What's happening in China

More efforts to expand imports for balanced trade

  1. Medicine firms slammed for using stars
  2. Fake capsule crackdown expanded
  3. Young migrant workers prefer Shanghai
  4. Taipei's Palace Museum to expand
  5. Sichuan storms strand thousands of passengers

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai