China economy posts 7.1 percent growth rate

[Ulhas Joglekar]

30 December 1999
China economy posts 7.1 percent growth rate
BEIJING: Boosted by government spending and a recovery in exports, China's
economy grew at a rate of 7.1 percent in 1999, just slightly exceeding the
government's annual target, the Xinhua News Agency reported Wednesday.
The government had set an annual target for growth in the gross domestic
product, the total value of goods and services, of 7 percent.
Citing the National Bureau of Statistics, Xinhua said the GDP this year
reached 8.319 trillion yuan (dlrs 1.007 trillion).
The figure reflected the government's success in fighting two straight years
of deflation with heavy government spending on construction of roads, ports
and other basic infrastructure.
However, the actual growth rate was slightly below a recent prediction by
the State Information Office, which tracks the economy, that growth in 1999
would hit 7.3 percent.
The office has forecast an 8 percent growth rate in 2000.
China began a massive deficit-spending campaign in 1998 to ward off the
effects of Asia's financial crisis and declines in foreign investment and
assist foundering, inefficient state industries. It also has enacted tax
reforms intended to encourage more spending by thrify Chinese consumers, who
save roughly 40 percent of their income.
Maintaining a steady economic growth rate is seen as crucial for political
stability given the millions of new jobs needed each year to absorb workers
laid off from state factories.(AP)
For reprint rights: Times Syndication Service
|Disclaimer|
For comments and feedback send Email
Bennett, Coleman & Co. Ltd. 1999.