Growth momentum on track amid calls to change

BEIJING: China’s growth momentum remains strong as fundamentals that help sustain its stable and fast development have not changed, a wide consensus reached by government officials and economists attending a development forum held in Beijing.

China currently has continued to maintain a rapid growth rate and that the economy on the whole is running steadily, vice-premier Li Keqiang said in a speech delivered at the China Development Forum 2012.

“Meanwhile, a positive trend for the economy has not changed in the long term,” Li said.

The vice-premier’s remarks came amid an extensive concern of whether the world’s second largest economy, as well as a nation with 1.3 billion people, can still outperform other countries and lead global growth when being challenged by a lacklustre external market.

Recognising China’s leadership role and adept policy skills when the recent global crisis hit, visiting chief of International Monetary Fund Christine Lagarde said the world’s economic situation might have been more “calamitous” had it not been for the impetus that China provided to growth and stability.

Despite a week external demand, the Chinese economy still posted a strong growth of 9.2% for 2011, braving forecasts of a hard landing.

The nation is currently undergoing fast urbanisation and industrialisation, which are the two elements among the drivers for long-term and sustained growth, said Ma Jiantang, chief of the National Bureau of Statistics.

Ma said with the increasing urbanisation rate, which surpassed 50% last year, more people from the rural areas will migrate to towns and cities, leading to a stronger demand for consumption.