Eco­nomic growth rate of 6.6pc ex­pected for China in 2018

The Myanmar Times - - International Business -

CHINA’S eco­nomic growth rate is ex­pected to be 6.6 per­cent in 2018, as re­vealed by the lat­est in­ves­ti­ga­tion of the Chi­nese Acad­emy of So­cial Sciences or CASS, Yi­cai.com re­ported Tues­day.

About 55 per­cent of the econ­o­mists sur­veyed be­lieve the eco­nomic growth rate of the sec­ond quar­ter of this year will re­main the same as the first quar­ter of 2018, ac­cord­ing to the in­ves­ti­ga­tion pub­lished on the China Econ­o­mist, a pe­ri­od­i­cal from the In­sti­tute of In­dus­trial Eco­nomics of CASS.

The pre­dic­tions for the av­er­age growth rates of China’s econ­omy in 2018 are 6.6 per­cent from econ­o­mists in east­ern China, 6.7 per­cent from those in cen­tral China, and 6.5 per­cent from those in western China, with the av­er­age pre­dic­tion nationwide be­ing 6.6 per­cent, the re­port said.

About 55 per­cent of econ­o­mists par­tic­i­pat­ing in the in­ves­ti­ga­tion be­lieve com­mod­ity price lev­els will in­crease com­pared with the same pe­riod last year and 25 per­cent of them be­lieve they will re­main the same.

The China Econ­o­mist com­mod­ity price in­dex of the sec­ond quar­ter of this year is 135, 9 per­cent­age points lower than last quar­ter, in­di­cat­ing that the in­creas­ing trend of com­mod­ity price lev­els will slow.

Mean­while, about 70 per­cent of the econ­o­mists be­lieve the pres­sure of over­ca­pac­ity will be re­lieved but it will still ex­ist for a long time in the next decade, re­vealed by the in­ves­ti­ga­tion pub­lished Tues­day.

Econ­o­mists be­lieve the pri­mary rea­son for the coun­try’s over­ca­pac­ity is the lack of in­no­va­tive abil­i­ties among man­u­fac­tur­ers, while the sec­ond rea­son is gov­ern­ment con­trol.

Nearly 80 per­cent of the econ­o­mists sur­veyed think the lack of in­no­va­tion and ad­vanced tech­nol­ogy means pro­duc­tion com­pa­nies can­not man­u­fac­ture prod­ucts that meet di­ver­si­fied needs, which leads to an over­ca­pac­ity of low-end prod­ucts and shortage of high-end prod­ucts.

About 88.3 per­cent of the econ­o­mists be­lieve that over­ca­pac­ity should be re­duced by the gov­ern­ment’s proper guid­ance and full us­age of mar­ket mech­a­nism ef­fects.

Most of the econ­o­mists be­lieve the role gov­ern­ment should play in over­ca­pac­ity re­duc­tion ought to in­clude set­ting stan­dards for ca­pac­ity with­drawal, guid­ing com­pa­nies in up­grades and per­fect­ing the le­gal sys­tem for en­ter­prise bank­ruptcy.

– China Daily

Photo: China Daily

The sky­line of Shen­zhen, South China’s Guang­dong prov­ince.

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