7.8 Percent Forecast for China's GDP Growth in 2001China's economy will stay on the fast track this year, with Gross Domestic Product (GDP) expected to grow about 7.8 percent, according to a report released Thursday by the Chinese Academy of Social Sciences (CASS).The report, completed by a panel of noted Chinese economists, predicts that the economy would grow at a "moderately fast pace". Conditions for the 7.8-percent growth include a stable world economic situation, the continuation of macro-control based on a pro-active fiscal policy, and the expansion of domestic demand. The added value for the agricultural sector is expected to grow 2.4 percent, with 9.4 percent growth anticipated for the manufacturing sector and a 7.7-percent rise for the service sector. Fixed assets investment is estimated at 3.57 trillion yuan. The retail prices of social commodities are forecast at the same level as that of 2000. The report lists major problems facing China's economy, which include a possible slowdown in the growth of imports and exports, and the relatively weak micro-foundation of the country's macro-economy. The State-owned enterprises, though initially pulled out of difficulties, still have a long way to go before they could fundamentally transform their management mechanism. The economists suggest that the Chinese government continue its pro-active fiscal policy and prudent monetary policy, push ahead financial reforms, and make preparations for China's entry into the World Trade Organization. |
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