Export view dim but FAI and sales rosy
By Wang Yanlin |
December 23, 2009, Wednesday
|
Print Edition
Print Edition
CHINA'S fixed-asset investment may surge 25 percent next year while retail sales are likely to jump 18.3 percent but exports may take longer to rebound to their former double-digit growth, the State Information Center said in a report yesterday.
The export sector may take time to go back to double-digit growth and is predicted to gain only 6 percent next year, said the think-tank under the State Council, China's Cabinet.
It suggested that private investment be enhanced and to rely less on policy-led funding to secure a sustainable development. Taxes should be cut and there should be provision of more products for old people while housing conditions need to be improved for the rural population in an effort to boost domestic consumption.
"China's growth will remain investment-led next year, but domestic consumption will (start to) play a larger role in the economy," said the report. It also added that private investment should be promoted to boost the economy and urged new hot areas be developed to lure consumer spending.
The report also urged the government to provide necessary tax, financing and land support for private firms to help them amid the economic slowdown.
In the first 11 months of this year, China's fixed-asset investment rose 32.1 percent to 16.8 trillion yuan (US$2.45 trillion), driven by its massive stimulus package.
Meanwhile, the report forecast domestic consumption will contribute more to the economy, although the actual pace of growth may slow from the current momentum.
Domestic consumption can also be stimulated by providing more goods and services for targeted consumers such as old people.
China's retail sales rose 15.3 percent from a year earlier to 11.2 trillion yuan through November.
The export sector may take time to go back to double-digit growth and is predicted to gain only 6 percent next year, said the think-tank under the State Council, China's Cabinet.
It suggested that private investment be enhanced and to rely less on policy-led funding to secure a sustainable development. Taxes should be cut and there should be provision of more products for old people while housing conditions need to be improved for the rural population in an effort to boost domestic consumption.
"China's growth will remain investment-led next year, but domestic consumption will (start to) play a larger role in the economy," said the report. It also added that private investment should be promoted to boost the economy and urged new hot areas be developed to lure consumer spending.
The report also urged the government to provide necessary tax, financing and land support for private firms to help them amid the economic slowdown.
In the first 11 months of this year, China's fixed-asset investment rose 32.1 percent to 16.8 trillion yuan (US$2.45 trillion), driven by its massive stimulus package.
Meanwhile, the report forecast domestic consumption will contribute more to the economy, although the actual pace of growth may slow from the current momentum.
Domestic consumption can also be stimulated by providing more goods and services for targeted consumers such as old people.
China's retail sales rose 15.3 percent from a year earlier to 11.2 trillion yuan through November.
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