Fan Gang, director of the National
Economics Research Institute of China Reform Foundation, delivers speech
at the opening session of the academic summit of China's Development and
Reform in the Global Financial Crisis of China Development Forum 2009 in
Beijing, capital of China, Mar. 21, 2009.(Xinhua Photo) Photo Gallery>>>
BEIJING, March 21 (Xinhua) -- China's economic recovery has positive but limited effect on world economic development, economist Fan Gang said at the China Development Forum 2009 Saturday.
China is a developing country and its economic recovery will have limited effect on world economy, which would pull out of downturn only after the recovery of major economies, said Fan, secretary general of China Reform Foundation.
With the impact of the global financial crisis on the real economy still deepening, the world economy needs to be prepared for two years of recession, according to Fan, who is also a member of the central bank's monetary policy committee.
Fan said China was likely to hit the 8-percent economic growth target this year.
"The increase in new projects and signs of recovery in industrial production showed the governmental stimulus package has begun to take some effect," Fan said.
Beginning late last year, the government has announced aggressive measures to ease the domestic impact of the global downturn. These included a 4-trillion-yuan (585.7 billion U.S. dollars) stimulus package, a plan to expand rural home appliance purchases and support plans for key industries.
Latest statistics showed in the January-February period, investment in projects authorized by the central government rose 40.3 percent, while spending on projects approved by local governments increased 25.1 percent.
Of 78,696 projects in progress nationwide, 18,533 were new, up 28 percent from a year earlier. Total planned investment in these projects was 743.7 billion yuan, up 87.5 percent, according to the National Bureau of Statistics (NBS).
Industrial output rose 11 percent in February, the first double-digit monthly gain since October.
Zheng Jingping, chief engineer of the NBS, described China's overall economic situation as "fairly good" backed by the measures to stimulate domestic demand.
However, it was still too early to tell whether or not the good signs would continue before March statistics came out, Zhang said.
Murilo Portugal, Deputy Managing Director of the International Monetary Fund, expected the global downturn to worsen in 2009. He forecast the world economy to decline 0.5 percent to 1.5 percent in 2009.
According to the previous forecast made by the World Bank, the world economy would fall 1.5 percent in 2009 from a year earlier.
A recovery might happen in 2010 if there are improvements in world economic data this summer, he said.
The China Development Forum 2009 runs here in Beijing from Saturday to Monday, with the theme of China's Development and Reform in the Global Financial Crisis.
Chinese Premier Wen Jiabao answers
questions during a press conference after the closing meeting of the
Second Session of the 11th National People's Congress (NPC) at the Great
Hall of the People in Beijing, capital of China, March 13, 2009. The
annual NPC session closed on Friday. (Xinhua Photo) Photo
Gallery>>>
BEIJING, March 13 (Xinhua) -- Chinese Premier Wen
Jiabao on Friday said the country has difficulty in achieving the goal of 8
percent economic growth in 2009, but it is possible with "considerable efforts."
Setting the goal is "the government's commitment and
responsibility" and has showed "confidence and hope" as the global financial
crisis is taking a toll, said Wen at a press conference after the annual session
of the National People's Congress (NPC) closed. Full story
BEIJING, March 18 (Xinhua) -- The World Bank (WB) has
cut its forecast for China's 2009 economic growth yet again -- this time to 6.5
percent from 7.5 percent, it said here Wednesday.
This is the second cut the bank has made for China's
2009 gross domestic product (GDP) growth forecast. Last November its prediction
stood at 9.2 percent. Full story
BEIJING, March 5 (Xinhua) -- China would make boosting
domestic demand a "long-term" strategy and take further measures to stimulate
consumer spending, as the country seeks to lead its economy out of a slowdown
that started with falling export.
The country would "give a full play" to the "leading" role
of domestic demand, particularly consumer demand, in driving economic growth,
Premier Wen Jiabao said in his government work report at the opening of the
second session of the 11th National People's Congress (NPC) Thursday.
BEIJING, March 9 (Xinhua) -- The two annual sessions of
Chinese lawmakers and advisors currently being held in Beijing against the
backdrop of the world financial crisis is in the spotlight of world attention.
Chinese Premier Wen Jiabao's pledge in his government
report on the occasion that China would zealously boost domestic demand and spur
economic growth will enhance confidence and hope for the world economy in
fighting the current crisis.
BEIJING, March 5 (Xinhua) -- China will be able to achieve
the economic growth target of about 8 percent in 2009, if proper policies and
measures are taken, says a government work report to be delivered by Premier Wen
Jiabao at the parliament's annual session Thursday.
"As long as we adopt the right policies and appropriate
measures and implement them effectively, we will be able to achieve this
target," reads the report, distributed to the media before the opening of the
Second Session of the 11th National People's Congress (NPC). Full story
