Fiscal, Monetary Policies to Further Stimulate China's Economic Growth: UNCTADAlthough export growth is expected to be slower in 2001, China's economy will be stimulated by its current fiscal and monetary policies, according to a report released by the United Nations Conference on Trade and Development (UNCTAD) Tuesday."The Trade and Development Report, 2001" also predicts that the country's infrastructure investment can be expected to increase, especially in the western provinces of China. "Given its growing dependence on the United States market, the slow-down in the United States is likely to reduce export growth in 2001," said the report. Exports and imports may also be affected by the prospect of China's accession to the WTO and the implications thereof for the exchange rate, added the UNCTAD report. China maintained a rapid economic growth rate of eight percent and reversed the deflationary trend that had been caused by weak domestic demand in recent years. While commenting on economic developments in other Asian countries, the report predicts that the economies of East Asian countries will be impacted by the slowdown of United States economy. "The current combination of declining sales in the United States and falling semiconductor prices has resulted in terms-of- trade losses and declining export earnings for all these countries. Growth is consequently expected to fall throughout the region this year." East Asia was the fastest-growing region last year. Part of the reason for the fast growth was the increase in exports to the United States, said the report. Rather than rising strongly together as many expected six months ago, the report warns that the world's leading economies are all heading downward, following a sharp slowdown in the United States. The UNCTAD called for bolder policies from, and cooperation among, all major economies to stop the global situation deteriorating further. |
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