China Set for 7.5% Annual Growth Over Five Years

01 November 2006

BEIJING: The economic juggernaut of the People's Republic of China predicts continued growth over the next five years at an average annual rate of 7.5%, effectively expanding by more than half as much again to an annual total of US$3.2 trillion (€2.52tr; £1.68tr) at current exchange rates.

Or so forecasts Ma Kai, Minister of the National Development and Reform Commission, speaking earlier this week to the World Industrial and Commercial Organizations Forum in Beijing.

The government claims that its macro-control policies started to kick in this year, while the consumer price index remains very low, down 0.7 of a percentage point from the previous year. In the January-September period GDP grew at 10.7% down 0.2 of a percentage point.

Kai attempted to reassure Western worriers that China's still-totalitarian communist government would further strengthen macro-control efforts by implementing more stringent financial and monetary policies and using administrative means.

"China will strive to make its economy grow in a more healthy way by focusing on reining in the fast growing investment, loans and trade surplus," he said.

Data sourced from People