ID :
16417
Wed, 08/20/2008 - 00:39
Auther :
Shortlink :
http://m.oananews.org//node/16417
The shortlink copeid
'Chinese economy not to suffer from post-Olympic blues'
officials have started reassuring the world that China will not suffer from a "post-Olympic recession" due to the scaleand potential of its economy, the world's fourth largest.
"The Olympic Games won't be a watershed for China's economic growth," said Wang Yiming, vice-president of the Academy of Macroeconomic Research, a think-tank under the National Development and Reform Commission, the country's topplanning body.
"The fundamentals propelling the country's economic development over the past 30 years will remain even after theGames," he said.
The Chinese economy grew at a blistering 11.9 percent in 2007. But the growth slowed down to 10.1 percent in the second half of this year, raising concern that the economycould suffer after the August 8-24 Games.
The direct impact of the Games has been limited becauseof the size of country's economy, Wang said.
China won the right in 2001 to host the Olympics and itseconomy has grown at an average rate of 10.5 percent since.
A number of factors, such as the nation's entry into the World Trade Organisation and the Olympic-related investment boom, have boosted the economy and made it the world's fastestgrowing.
China’s gross domestic product (G.D.P.) totalled 13.0619 trillion yuan (USD 1.9062 trillion) in the first half of 2008,a 10.4 per cent increase year on year. The country’s G.D.P.
was 24.6619 trillion yuan in 2007, ranking fourth in theworld.
To prepare for the Games, Beijing spent about 13 billion yuan (USD 1.89 billion) to build sports facilities and 280 billion yuan (USD 40.75 billion) to improve urbaninfrastructure.
The massive investments helped Beijing's economy grow an estimated 10 percent faster in the past seven years, said Yang Kaizhong, president of Beijing Economic and SocialDevelopment Research Institute.
But the 293-billion-yuan bill, hefty as it is, only accounted for 0.55 percent to 1.06 percent of China's fixed asset investment between 2005 and 2008, the peak time for Olympic-related investments, Wang was quoted as saying byChina Daily.
And Beijing, the main recipient of Olympics-related investment, only accounts for 3.6 percent of the country'sgross domestic product (GDP).
Officials say China will continue its substantial investment in infrastructure even after the Games and thatwould help sustain the economy's growth momentum.
Other mega-events, such as the 2010 Shanghai World Expo and the 16th Asian Games to be held in Guangzhou the sameyear, are also likely to boost the economy, Wang said.
Earlier, the Chinese central government said it would strive to maintain a stable and fast economic growth whilecurbing inflation.
The country, especially its exports sector, has already felt the pinch of a falling growth rate and rising costs of labour and raw materials. More than 67,000 small- and medium-sized enterprises have reportedly had to shut down inthe first half.
"Growth is likely to slow after the Olympics" but not because the Games would be over, Wang Tao, an economist withUBS Securities, said.
"The Olympic Games won't be a watershed for China's economic growth," said Wang Yiming, vice-president of the Academy of Macroeconomic Research, a think-tank under the National Development and Reform Commission, the country's topplanning body.
"The fundamentals propelling the country's economic development over the past 30 years will remain even after theGames," he said.
The Chinese economy grew at a blistering 11.9 percent in 2007. But the growth slowed down to 10.1 percent in the second half of this year, raising concern that the economycould suffer after the August 8-24 Games.
The direct impact of the Games has been limited becauseof the size of country's economy, Wang said.
China won the right in 2001 to host the Olympics and itseconomy has grown at an average rate of 10.5 percent since.
A number of factors, such as the nation's entry into the World Trade Organisation and the Olympic-related investment boom, have boosted the economy and made it the world's fastestgrowing.
China’s gross domestic product (G.D.P.) totalled 13.0619 trillion yuan (USD 1.9062 trillion) in the first half of 2008,a 10.4 per cent increase year on year. The country’s G.D.P.
was 24.6619 trillion yuan in 2007, ranking fourth in theworld.
To prepare for the Games, Beijing spent about 13 billion yuan (USD 1.89 billion) to build sports facilities and 280 billion yuan (USD 40.75 billion) to improve urbaninfrastructure.
The massive investments helped Beijing's economy grow an estimated 10 percent faster in the past seven years, said Yang Kaizhong, president of Beijing Economic and SocialDevelopment Research Institute.
But the 293-billion-yuan bill, hefty as it is, only accounted for 0.55 percent to 1.06 percent of China's fixed asset investment between 2005 and 2008, the peak time for Olympic-related investments, Wang was quoted as saying byChina Daily.
And Beijing, the main recipient of Olympics-related investment, only accounts for 3.6 percent of the country'sgross domestic product (GDP).
Officials say China will continue its substantial investment in infrastructure even after the Games and thatwould help sustain the economy's growth momentum.
Other mega-events, such as the 2010 Shanghai World Expo and the 16th Asian Games to be held in Guangzhou the sameyear, are also likely to boost the economy, Wang said.
Earlier, the Chinese central government said it would strive to maintain a stable and fast economic growth whilecurbing inflation.
The country, especially its exports sector, has already felt the pinch of a falling growth rate and rising costs of labour and raw materials. More than 67,000 small- and medium-sized enterprises have reportedly had to shut down inthe first half.
"Growth is likely to slow after the Olympics" but not because the Games would be over, Wang Tao, an economist withUBS Securities, said.
