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WB Report: China to Remain East Asia's Fastest Growing Economy
China is expected to remain the fastest growing economy among east Asian countries, with its GDP growth projected at 7.3 percent in the period leading up to the country's entry into the World Trade Organization, said the World Bank Regional Economic Review released Thursday.
China scored an eight-percent GDP growth rate last year.
The World Bank (WB) expects East Asia to weather the slowdown in the US economy and the slowing demand for technology as well, with most countries in the region predicted to have an average GDP growth of three to seven percent in 2001.
The prospect of a prolonged regional slump is slim, according to the report.
Masahiro Kawai, chief economist for the WB, said the global environment for China's growth is "less favorable" this year compared with 2000 because a world economic slowdown was expected.
"It is difficult to address China's GDP growth after its entry into the WTO, but we predict that it will be slightly higher than without the WTO," he said.
The slowdown in the U.S. economy has affected the exports of many east Asian countries. China's exports of electronic products, textiles and garments, toys and sports equipment saw a considerable drop in January and February this year, he said.
"WB expects China's exports for 2001 to grow by 10-12 percent, significantly down from last year's 28 percent," the WB economist said.
Jemal-ud-din, vice-president of the WB for the East Asia and Pacific Region, said that China's proactive fiscal policy over the past few years has been very successful. "It has added 1.5 to two percentage points of growth each year and has helped China maintain its growth rate and macro-economic stability."
It is "appropriate" for China to continue such a policy, especially when the global economy is slowing down and China has an increasing need to expand domestic demand, he said.
China's implementation of the Tenth Five-Year Plan (2001-2005) has facilitated the country to stage on a new development level, but problems China has to tackle are becoming more complex and challenges tougher, he said.
He said the WB is willing to cooperate with the Chinese government in meeting these challenges and help China to step up its ongoing reforms.
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