| China's economy grew at its fastest pace for six years in
2003, adding 9.1% to gross domestic product, with both industrial production
and disposable income showing sharp increases, official statistics have
shown. The growth rate in the final three months of last year was even more
rapid, up 9.9%.
China's strong performance was due to growth in trade, foreign
investment, and consumer spending. Chinese officials are predicting a
cautious 7% growth in 2004, a figure most economists expect to be beaten.
SARS Pain Gone
China's performance makes it the fastest growing among the world's major
economies, outpacing the United States and far ahead of sluggish Japan. It
also shows that growth in the world's sixth biggest economy was not thrown
off track by the Sars outbreak last Spring.
"There are signs of overheating in some regions and areas," said Li
Deshui, director of China's National Statistics Bureau. But he added, "There
is no need to slam on the brakes."
China's Industrial Production Jumped 17% in 2003
The picture in manufacturing is not all rosy, however, since output from
inefficient state-run firms being bankrolled by the state to avoid too-rapid
job cuts and instability is causing fears about the strength of China's
banks.
Domestic spending power is growing
Foreign investment has soared since China opened its markets to join the
World Trade Organisation (WTO) in 2002 as manufacturers have piled into the
country in hope of tapping its potentially huge consumer market, as well as
its mix of cheap skilled and unskilled labour.
Retail sales rose 9.1% in 2003, while disposable income rose 9.3% in
urban areas and 4.3% in the countryside. Overall growth in 2003 was better
than 8.5%, the figure predicted by the head of the state tax office last
week.
The statistics bureau said growth in the July to September period of 2003
was 9.6%, not 9.1% as originally thought.
China has made strenuous efforts in recent years to improve the way it
collects and compiles economic data to satisfy international standards,
though some economists remain sceptical about Chinese data.
(Source: bbc.co.uk) |
