The National Bureau of Statistics announced today, July 17, that China's economy grew stably and rapidly at a speed of 10.4 percent during the first half of the year, which was 1.8 percentage points slower than the same period of last year. The result is in tune with what has been expected from the government's macro-control policies.
The consumer price index (CPI) increased by 7.9 percent after a consecutive slowdown in CPI in May and June in comparison with both the same months of last year and previous months.
Li Xiaochao, spokesperson for the NBS, stressed at the press conference that the economic slowdown represents a trend which was expected to emerge from effective macro-control policies, rather than a turning point in the economy.
First, it is the objective of the central government's macro-control policy to prevent economic overheating following the growth speed, thought to be too fast. The slowdown demonstrates the effectiveness of monetary, fiscal, tax, trade and land policies designed and implemented to rein in economic growth.
Second, the downward movement is quite stable. The first quarter saw a decline of only 1.1 percentage points from the same period last year and the previous quarter. The second quarter was 2.5 percentage points slower than the same period last year and 0.5 percentage points slower than the first quarter.
Third, there is a mixed picture in the overall slowdown. Geographically, while growth in the eastern part of the country became moderate, growth in the mid-west was accelerating. The mid-west also outpaced the east in investment growth. Investment in Central China rose by 35.3 percent and that in the West by 28.6, compared with 22.4 percent in the East. Moreover, the hi-tech industry enjoyed faster growth while industries with intensive energy consumption experienced the slowest rise ever.
Fourth, it is worth recognizing that current economic growth is still fast. It is higher than the average annual speed over the last 30 years of reform and opening up.
Fifth, there remain dynamics which will drive the economy on a fast track in the future. Generally, China is still in a period when its process of industrialization and urbanization is gaining momentum. Meanwhile, the imbalance in the development means more room for further development.
By People's Daily Online
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