China's economy is going to grow steadily instead of slowing
down, said Zhu Zhixin, vice minister of the National Development
and Reform Commission (NDRC), refuting recent predictions of an
economic slowdown. He was speaking at the International Forum on
China's Financial Risk Management held in Beijing on June 18 and
19.
Experts have been quoted in media reports as saying that China's
economy will slow down, citing low consumer price index (CPI)
levels in April and May, continually falling investments and a
gradual slowing down of investment growth rates as signs of
deflation.
CPI growth rates decreased to 1.8 percent in April and May,
compared with 2.7 percent in March.
Some experts have also reportedly warned that if the country
continues with its austere policies, its gross domestic product
(GDP) could also nosedive.
But Zhu said that economic growth isn't dependent only on CPI
and fixed asset investments.
The dip in CPI levels in April and May was attributed mainly to
a fall in grain prices.
"The CPI we calculated was actually 2 to 3 percent more than the
figure published by the government," said Ha Jiming, a chief
economist at China International Capital Corporation Limited.
He said indices such as investment product price and property
price should also be taken into consideration when evaluating
CPI.
Judging from residents' bank savings and analyses into future
inflation, China still faces the challenges of repressed inflation,
said Ha.
(China.org.cn by Yuan Fang June 26, 2005)