China's economy this year is expected to grow faster than last year and probably attain a growth rate of 7.5 percent, Chinese economists have said.

Official figures show that the economy grew by 7.1 percent in 1999, meeting the beginning-of-the-year target for growth.

"Based on the economic situation in 1999, China's economy will maintain a steady and improving momentum as the gross domestic product grows by 7-7.5 percent this year," said economist Xiao Zhuoji, a professor at the prestigious Beijing University.

In a newly published book "Analysis and Forecast of China's Economic Situation in 2000", a group of authoritative economists from the Chinese Academy of Social Sciences say that economic growth will stand at between 7.5 and eight percent this year.

They predict that the first industry will grow by 3.5 percent, while the second and tertiary industries will grow by nine percent and seven percent respectively.

Professor Wang Songqi, deputy director of the Financial Research Center at the Chinese Academy of Social Sciences, told Xinhua that this year, the Chinese government is expected to continue to pursue an active fiscal policy. He predicts that the country's economic performance will be better than last year, witha growth rate of nearly eight percent.

Economists here widely agree on the positive forces behind thisyear's economic growth.

First, deflation is being alleviated as measures taken by the government had begun to take effect. This year, consumption will receive a boost from the holidays, celebrations and tourism.

Second, the recovery of the Asian economy and the soundness of the economies of Europe and America have helped create favorable conditions for China to increase exports. Exports are expected to grow by 8-10 percent in 2000.

Third, acceleration of reform will improve efficiency and profits of state-owned enterprises.

Finally, the launch of large-scale development in the western part of the country will also help promote economic growth this year.

According to the results of a random survey conducted by 13 surveyors in 14 cities around China in the end of 1999, nearly 58 percent of urban residents expect a better economic situation in 2000. Another 23 percent of urban residents believe that the economic situation will remain unchanged this year, while only 7.7percent of the people questioned are less optimistic about this year's economic situation.

At the same time, economists pointed out that there are still many difficulties in economic development this year, including inadequate demand and deflation.

In 1999, the retail sales of commodities increased 6.8 percent,slower than the overall growth rate of the economy. So far, the prices of production material have been dropping for 44 consecutive months, while the prices of consumer goods kept decreasing for 25 consecutive months. And the prices of retail goods showed merely a marginal recovery. Economists say that the consumer market has yet to see any bright spots.