China economy posts 7.1 percent growth rate

Ulhas Joglekar ulhasj at
Sun Jan 2 06:20:40 PST 2000

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
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