China’s Economy: Economists optimistic about China’s future growth
Top economists are expressing optimism about China’s future growth citing domestic circulation and consumption as major driving forces. This comes after the main economic targets were unveiled during the Two Sessions. Gao Ang has more.
Rising global tensions, and soaring commodity prices.
While the global economy has seen volatility, economists remain hopeful about China’s future growth.
JUSTIN YIFU LIN Member, Standing Committee Chinese People’s Political Consultative Conference “I think that this year and in the coming years, I think that china will maintain reasonably high growth. The actual growth rate, to certain degree, depends on the global economic situations. And we also need to take care that the growth should be high quality. But overall, I think that this year in the coming years, I think the growth performers will be satisfactory in china.”
But what’s behind the hope?
The government has set China’s GDP growth target at 5.5 percent for this year, surpassing the IMF’s forecast of 4.8 percent.
Professor Bai Chong-En from Tsinghua University stresses the role of consumption.
PROF. BAI CHONG-EN Dean, School of Economics and Management, Tsinghua University “The biggest driving force will be consumption. If you think the purpose of economic development is to make it possible for people to live better, then you do want to raise consumption.”
And to boost consumption, it’s important to add more jobs and increase incomes. The government work report says China aims to create over 11 million new jobs this year.
And there’s the cultural aspect of economic growth.
Professor Bai says China’s adventurous and well-educated young consumers are also fueling economic development.
PROF. BAI CHONG-EN Dean, School of Economics and Management, Tsinghua University “Our young people are good consumers. They are also good innovators. They know what they want. So they innovate to create products that their peers they want. So I think that’s an important driver of China’s growth as well.”