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PECC Foresees Faster Growth of Chinese Economy
The Pacific Economic Cooperation Council (PECC) expected the Chinese economy to grow by 7.3 percent this year and by 7.6 percent in 2001, according to a report released by the organization Tuesday in Hong Kong.
PECC predicted that consumption will lead the higher growth in 2000, with a 9 percent increase in total retail sales of consumer goods and a 7.4 percent growth in total consumption.
Total investment in fixed assets, which was formerly a strong engine driving china's economy, is expected to increase by 8.6 percent as the Chinese government will continue debt financing to encourage investment in this area.
Foreign direct investment may increase even faster, reaching 12 percent growth, with resolution of the uncertainty about China's entry into the World Trade Organization, the report said.
The improved world economy is expected to provide the momentum for export growth of 12 percent in 2000, compared to the 6.1 percent in 1999 while imports are forecast to grow by 10 percent.
The report pointed out the consumer price index of China has finished its descent and will rise slightly in 2000 as sources of demand continue to rise.
The PECC described the economic performance of China in 1999 as "satisfactory."
With the recovery of the East Asian economy and concerted government effort, China's economy continued to grow at a steady speed in 1999, with gross domestic product increasing by 7.1 percent.
This marked the slowest growth since 1992, but given world and regional growth, it was remarkable, said the report.
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