China’s growth in ‘reasonable range’
Print Edition
CHINA’S economic growth of 6.9 percent in the first three quarters was within a “reasonable range” but was not easily achieved, Premier Li Keqiang said in comments reported by the government ahead of a key meeting this week that will set economic and social targets for the next five years.
“The growth of 6.9 percent is about 7 percent and within a reasonable range,” Li said.
“We have never said that we should defend to the death any goal ... The growth has not been achieved with ease, given the scenario of a lackluster recovery of global economic growth and a complicated and changeable domestic situation,” the central government paraphrased Li as saying in a statement released on its website late on Saturday.
His comments coincided with remarks by a top central bank official, who said on Saturday that China will be able to keep annual economic growth at about 6 or 7 percent over the period.
The statements came at a time of growing concern in global financial markets over the remaining power in the once mighty economic juggernaut.
China on Friday cut interest rates for the sixth time in less than a year. Monetary policy easing is at its most aggressive since the 2008-09 financial crisis, as growth looks set to slip to a 25-year-low this year of under 7 percent.
Speaking on Friday at the Central Party School, which trains rising officials, Li said the economic difficulties ahead for China should not be underestimated.
The Party’s central committee will meet from today through Thursday to set out the 13th country’s five-year plan.
Nevertheless, while the focus is on growth, China is still moving ahead with its financial reforms.
Besides cutting interest rates on Friday, the People’s Bank of China said it was also freeing the interest rate market by scrapping a ceiling on deposit rates.
The change, which Beijing had been promising for months to deliver, will in theory allow banks to price loans according to their risk, and remove a distortion to the price of credit. it should also offer some reassurance to financial markets after they were unsettled by the chaotic responses to the country’s recent stock market plunge and then a devaluation of the yuan.
The deposit rate reform builds on the introduction of deposit insurance, creating space for smaller banks to compete with their bigger rivals.
It is seen as a long-term step toward a more market-driven banking sector, if smaller banks lend funds to parts of the economy shunned by large banks.
China’s economic growth has not been bad over the past year considering the problems in the global economy, Li said.
There are reasons for optimism going forward, such as rising employment, more spending on tourism and a fast growing service sector, he said.
“The hard work of people up and down the country, and the enormous potential of China’s economy gives us more confidence that we can overcome the various difficulties,” he said.
While China has flagged a “new normal” of slower growth as it tries to shift the economy to sustainable, consumption-led growth, official data show it has consistently at least met, and mostly exceeded, the growth targets it has set.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
