China vows firm growth, inflation management
Source: Xinhua |
December 13, 2010, Monday
|
Print Edition
Print Edition
China's leaders wrapped up an annual economic planning meeting yesterday with a pledge to keep growth on track next year while stepping up moves to combat inflation.
The vow to keep the economy on an even keel came a day after the government reported that inflation surged to a 28-month high of 5.1 percent in November, despite efforts to counter speculation and increase food supplies.
A statement issued after the Central Economic Work Conference said the government would keep its policy flexible, proactive and prudent while trying to maintain a balance between fast growth and stability.
China will enhance and improve macro-economic regulation to ensure stable and healthy economic development next year, it said.
Next year's macro-regulation should be basically proactive, stable, prudent and flexible, it added. The focus will be better handling of the relationship between stable and relatively fast economic development, economic restructuring and inflation expectations in an active and stable way.
"China is facing a complicated situation. Improving people's living standards and keeping social stability are still arduous tasks," the statement said.
Participants at the three-day conference agreed to exert more efforts to keep prices stable next year.
They also agreed to accelerate the strategic transformation of the economic development pattern in order to make economic development more coordinated, sustainable and reliant on the domestic economy.
The meeting also warned against "blindly launching new projects" as the country begins a new five-year plan starting next year.
China's economy grew 9.6 percent year on year in the third quarter of this year, slowing from the 10.3 percent rise in the second quarter and an 11.9 percent surge in the first quarter.
Inflation hit its 28-month high of 5.1 percent last month as bank lending looked certain to exceed the 7.5 trillion yuan (US$1.1 trillion) full-year target the government set at the start of the year.
Similarly, growth in the broad money supply - cash in circulation and all deposits - will surpass the full-year target of 17 percent.
To curb inflation and soak up excessive liquidity, the country's central bank raised banks' reserve requirement ratio six times this year. It also lifted the benchmark lending and deposit rates on October 20, the first such move in three years.
The meeting reaffirmed a determination to boost farm produce supply through the development of modern agriculture next year, and clamp down on price speculation.
The meeting reaffirmed the continuation of the government's proactive fiscal policy and steady growth in fiscal revenue. It also stressed austerity in government administrative expenditure.
Gao Peiyong, a researcher with the Chinese Academy of Social Sciences, said a combination of proactive fiscal policy and a prudent monetary policy underscored the complications of the current economic situation.
"Macro-regulation has various goals. One is preventing the economy being affected by the global financial crisis. Another is curbing inflation. The situation is more complicated than before," he said.
The meeting said China's stable economic development would encounter many challenges next year.
It was agreed that the government should make more efforts to boost consumer spending, check industries with excess capacity, upgrade traditional manufacturing and strengthen the service industry.
The vow to keep the economy on an even keel came a day after the government reported that inflation surged to a 28-month high of 5.1 percent in November, despite efforts to counter speculation and increase food supplies.
A statement issued after the Central Economic Work Conference said the government would keep its policy flexible, proactive and prudent while trying to maintain a balance between fast growth and stability.
China will enhance and improve macro-economic regulation to ensure stable and healthy economic development next year, it said.
Next year's macro-regulation should be basically proactive, stable, prudent and flexible, it added. The focus will be better handling of the relationship between stable and relatively fast economic development, economic restructuring and inflation expectations in an active and stable way.
"China is facing a complicated situation. Improving people's living standards and keeping social stability are still arduous tasks," the statement said.
Participants at the three-day conference agreed to exert more efforts to keep prices stable next year.
They also agreed to accelerate the strategic transformation of the economic development pattern in order to make economic development more coordinated, sustainable and reliant on the domestic economy.
The meeting also warned against "blindly launching new projects" as the country begins a new five-year plan starting next year.
China's economy grew 9.6 percent year on year in the third quarter of this year, slowing from the 10.3 percent rise in the second quarter and an 11.9 percent surge in the first quarter.
Inflation hit its 28-month high of 5.1 percent last month as bank lending looked certain to exceed the 7.5 trillion yuan (US$1.1 trillion) full-year target the government set at the start of the year.
Similarly, growth in the broad money supply - cash in circulation and all deposits - will surpass the full-year target of 17 percent.
To curb inflation and soak up excessive liquidity, the country's central bank raised banks' reserve requirement ratio six times this year. It also lifted the benchmark lending and deposit rates on October 20, the first such move in three years.
The meeting reaffirmed a determination to boost farm produce supply through the development of modern agriculture next year, and clamp down on price speculation.
The meeting reaffirmed the continuation of the government's proactive fiscal policy and steady growth in fiscal revenue. It also stressed austerity in government administrative expenditure.
Gao Peiyong, a researcher with the Chinese Academy of Social Sciences, said a combination of proactive fiscal policy and a prudent monetary policy underscored the complications of the current economic situation.
"Macro-regulation has various goals. One is preventing the economy being affected by the global financial crisis. Another is curbing inflation. The situation is more complicated than before," he said.
The meeting said China's stable economic development would encounter many challenges next year.
It was agreed that the government should make more efforts to boost consumer spending, check industries with excess capacity, upgrade traditional manufacturing and strengthen the service industry.
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