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China's economy could potentially produce a higher growth rate in 2002, despite a sharper than expected negative impact posed by world's economic doldrums, said senior governmental officials.
But the uncertainty of the external situation will add some obstacles to the country's continued economic upswing. China is one of the few economies in the world to witness stronger growth in the past several years.
"China's stronger economic performance in the past several years will offer sound backing to fuel its economic growth in 2002," said Li Xiaochao, spokesman of the National Bureau of Statistics.
China's accumulated wealth in past years has already laid a solid foundation for the country to maintain robust growth next year, Li said at the ongoing two-day China Development Forum, which concludes today.
He refers to China's foreign exchange reserve, which already reached US$200 billion in October, and is still likely to increase in upcoming months, which will help the country stave off problems with export declines.
"Backed by the large pool of deposits amounting to some US$846 billion, we still have much room to tap in terms of economic policy to stimulate the economy," said Li.
The government's earlier forecast said the economy is likely to grow by 7 per cent next year, triggered by an expanded domestic market demand and an increased inflow of foreign funds after China's official accession to the world's largest trading club - the World Trade Organization.
That prediction was echoed by the Asian Development Bank last month, which also adjusted its forecast for China's economic growth in 2002 to 7 per cent from the original 7.3 per cent it forecast in April.
He said China will continue its proactive fiscal policy next year in a bid to sustain economic development.
However, the country's exports face worse prospects than in the Asian economic crisis and measurable exports growth must be maintained in order to help attain a 7 per cent economic growth rate in 2002.
"We will strive to expand exports next year and try to achieve measurable growth in exports," said Sun Zhenyu, China's vice-trade minister, who was also at the forum yesterday.
China's export growth has slowed dramatically this year as the world economic slump hit major overseas markets.
Meanwhile, the economic doldrums of the world's three leading economies - the United States, European Union and Japan - and the uncertainty of the anti-terrorist war will cast further clouds on China's economic performance next year.
Other troubles that are likely to have negative impact on the country's economic performance next year include slower income growth among the country's 800 million farmers, who comprise 64 per cent of the population of the most populous nation in the world, said Li.
And a further decline in the country's weak consumer price index will also affect the country's economic growth.
(China Daily December 7, 2001)
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