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Last Updated:
Oct 23, 2009 - 1:58:22 AM |
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| Takatoshi Kato, Deputy Managing Director, International Monetary Fund, said in Seoul, Korea last week that Asia’s dependence on demand from outside the region has not changed markedly during the global financial crisis.
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China's economy grew 8.9% in the third quarter of 2009 from the same period a year earlier, rising from the second quarter's 7.9% growth rate.
Recent data has also shown that growth is no longer totally dependent on the government's massive $585 billion stimulus program. In the current quarter the financial performance of Chinese companies has improved.
NBS spokesman Li Xiaochao told a press conference that China's gross domestic product (GDP) totaled RMB 21.78 trillion yuan (about US$3.18 trillion) in the first nine months.
A basket of policies adopted by the Chinese government to fight the global financial crisis has produced significant results and the Chinese economy is on a "consolidated" growth recovery, he said.
According to Li, China is able to achieve the annual growth target of 8 percent, which the government believes is essential to generate enough jobs.
China needs to create 25 million new jobs each year - equivalent to the combined population of Australia and New Zealand.
Research shows that more than one in four industrial jobs are either destroyed or created over an average one-year interval for China, while roughly one-in-five manufacturing jobs are reallocated in the US. This indicates enormous job shuffling and resource shifts associated with China's reform process.
"Currently, the Chinese economy is in a critical period of stabilization and moving upward. The basis for a full economic recovery needs to be consolidated. Overseas demand is still weak and it is still a tough task (for China) to expand domestic and adjust the economic structure," Li said.
In the following months, China will maintain the continuity and stability of the macro economic policies, stick to the proactive fiscal policy and moderately easy monetary policy and fully implement the basket of policies and plans adopted earlier by the central government, he said.
On Wednesday, the State Council, China's Cabinet, said in a statement that the country's economic and social development was better than expected.
China's State news agency Xinhua, reported that a key point of China's macro-regulation in the coming months would be to balance the tasks of ensuring a stable and relatively fast economic growth, adjusting economic structures and regulating inflation prospects, said the statement.
The NBS spokesman also said China's consumer price index (CPI), a main gauge of inflation, dipped 1.1 percent year on year in the first nine months of this year.
The September CPI was up 0.4 percent over the previous month. But the NBS did not provide the reading of September CPI on an annual basis.
CPI declined 1.2 percent in August from a year earlier, the seventh consecutive month of decline since the index dropped 1.6 percent in February, the first fall since October 2002.
The producer price index (PPI), a major measurement of inflation at the wholesale level, dropped 6.5 percent year on year in the first three quarters of this year, Li said. The September PPI rose 0.6 percent from a month earlier.
Industrial output rose 12.4 percent in the third quarter from a year ago. The figure increased 8.7 percent year on year in the first nine months.
Retail sales in the first nine months rose 15.1 percent year on year to RMB8.97 trillion yuan ($1.31 trillion dollars).
