Economy may rebound to 8.2% in 2013: experts (2)

But there are signs of hope.

The Flash HSBC Purchasing Managers' Index in November showed its first reading above 50 - the demarcation line between contraction and expansion - in 13 months, indicating that the manufacturing sector may witness growth this month.

Net income of industrial companies grew by 20.5 percent in October, up from 7.8 percent in September and minus 6.2 percent in August, according to the National Bureau of Statistics.

Ha Jiming, vice-chairman and chief investment strategist of Goldman Sachs' investment management division for China, said the country will continue to go through a U-shaped rebound.

Helen Qiao, chief China economist for Morgan Stanley, said that unless employment figures drop sharply next year, macroeconomic policy will remain stable.

"There may be space for further easing of monetary policy in the second half of next year," she said.

The economists suggested that policymakers pay more attention to fiscal reform.

Yao Jingyuan, a researcher from the Counselors' Office of the State Council, said: "The government can consider raising the threshold of personal income tax as well as reducing the tax rate for small and medium-sized businesses, which is helpful in encouraging domestic consumption."

chenjia1@chinadaily.com.cn

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