The quarterly report released yesterday by Macroeconomic Analysis Task Force of the State Information Center (SIC) reveals that various support conditions have led to the country's economic development. China's potential fiscal growth rate has increased from 9 -10 percent to 11 -12 percent.
The report also says that GDP growth of 11.9 percent in the second quarter does not mean the economy is overheating, as potential growth rate of China's economy has improved significantly. Furthermore, the current rise in Consumer Price Index (CPI) shows significant structural characteristics which will not lead to overall inflation.
With economic growth and the improvement of restraint environment between raw materials and finance, country's potential growth rate has improved. Being driven by factors like urbanization, industrialization, internationalization and upgradation of consumption structure, the pulling powers of major demands on economic growth are more balanced.
China's ability of rapid and sustained economic growth is relatively strong; as a result, the current economic cycle is expected to extend for longer time. But compared to the first half of the year, the third-quarter economic growth will show a downtrend amid steadiness due to lagged effect of various policies.
According to preliminary projection of this report, the third quarter GDP growth will be at 11.4 percent, lower than the second quarter growth of 11.9 percent.
Fibre2fashion News Desk - China
marketing@alchempro.com
