Lin believes China's economy still has potential for double-digit growth

Source: Internet
Author: User
Keywords China digit Chinese government China Justin Yifu
Tags agency developed countries developing developing countries development double-digit economic economic development
Xinhua Beijing, November 11 (reporter Li Zhihui, Sun Xiaosheng, Li Jiangtao) World Bank vice president and chief economist Justin Yifu Lin said 11th that the government's massive fiscal and monetary stimulus helped China's economy lead the recovery in the international financial crisis, and if external conditions are favorable, China's economy will still have the potential to maintain double-digit growth in the future. In an interview with Xinhua news agency, Lin said that the Chinese government is now in a better state of fiscal position, with low debt and 2 trillion dollars in foreign exchange reserves.  At the same time, China's industrial upgrading and technology upgrading space, infrastructure investment opportunities, good talent reserves, if the full use of these conditions, in a favourable international environment, the Chinese economy "has the potential to achieve double-digit growth." Lin, who has come to Beijing for the 2009 Nobel Prize winner, has praised the Chinese government's fiscal stimulus policy as a "very good overall direction".  He noted that 80% of the 4 trillion yuan investment was spent on infrastructure, and half of that investment involved projects that were energy-saving and environmentally friendly. "Such investments can start demand in the short term, create jobs, and in the long run increase the potential for economic growth, maintain sustainable growth and narrow regional disparities."  "said Lin.  China is steadily meeting its 8% per cent growth target this year, according to the World Bank's latest issue of China's quarterly report last week, so the bank's forecast for China's GDP growth in 2009 rose from 7.2% to 8.4%.  In response to fears that China's massive stimulus measures could lead to inflation, Prof Lin said that if the quality of the projects was high and productivity increased, government taxes would increase, and investments that could pay for the current positive fiscal policies would not necessarily lead to inflation.  For example, in the aftermath of the Asian financial crisis, the Chinese government adopted an active fiscal policy from 1998 to 2000, and after 2003 years China's economy grew fast, with double-digit growth from 2003 to 2007, while inflation remained at a moderate level. "China can still maintain a positive fiscal policy at this stage."  "he said.  In the absence of suspense, the Chinese Government attaches great importance to adjusting its economic structure, which is a major problem that has plagued China's economic development for a long time. Lin stressed that to achieve the goal of "structural adjustment", in addition to industrial restructuring, China should also attach importance to the adjustment of financial structure, develop regional small and medium-sized banks, increase the financial support for small and medium-sized enterprises and farmers. "The industry in which SMEs are located is the most competitive industry in China, which enables sustainable economic development and provides more job opportunities."  "he said.  Lin said that if the financial structure can be improved, it can adjust the structure of the enterprise, and then realize the adjustment of income distribution structure, and maintain the harmonious and healthy development of the economy.  Lin pointed out that the overall recovery of the world economy, but the basis for recovery is still unstable, which requires countries to jointly respond, coordinate, adhere to the globalization of trade and avoid trade protectionism. The main challenge for China and the world economy today, he argues, is overcapacity. Once overcapacity, it is difficult to find good investment opportunities, investment needsDecline, resulting in a rise in unemployment, a negative impact on income levels and consumption.  To that end, he advocated "beyond Keynesian" and encouraged countries to work across borders and invest. "Rich countries have money and developing countries have opportunities." "The developed countries can invest in developing countries with inadequate infrastructure and an urgent need for foreign capital, which will not only enhance the growth potential of developing countries, but also create large-scale markets for the developed countries and achieve a" double win ", Lin said.
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.