China Estimates 2013 Growth Slowed to 7.6%

BEIJING (AP) -- China's Cabinet estimates this year's economic growth edged down to 7.6% and warned it faces pressure to decline further, a state news agency said Thursday.

The forecast, reported by the Xinhua News Agency, is below the 2012 rate of 7.7% but above the government's 7.5% target.

Communist leaders are trying to steer China to slower, more sustainable growth but an unexpectedly sharp decline in 2012 and this year prompted concern about politically dangerous job losses. Beijing temporarily reversed course and shored up growth in mid-2013 with a mini-stimulus of higher spending on building railways and other public works.

China has the strongest economic growth of any major country but this year's forecast rate is barely half of 2009's 14.2%.

In a report to China's ceremonial legislature, the Cabinet warned that growth faces challenges including rising labor costs, environmental problems, weak global demand and excess production capacity in some industries, according to Xinhua.

"We cannot deny a downward pressure on economic growth," the minister in charge of the Cabinet's planning agency, Xu Shaoshi, was quoted as saying.

The report cited potential problems including slow economic restructuring, worsening pollution and "social conflicts among interest groups," Xinhua said.

The government will continue to reduce excess production capacity in industries including steel, cement, aluminum and glass in which supply exceeds demand, Xinhua said. The glut of supply in those fields has led to price-cutting wars that threaten the financial health of companies.

Chinese leaders are under pressure to replace a growth model based on exports and investment that delivered three decades of rapid expansion but has run out of steam.

A development blueprint issued last month by the ruling party promises to revive economic growth by giving the free market a bigger role and opening more areas to private business. It promises to inject more competition into some industries dominated by state companies but says government ownership will remain the core of the economy.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2776474, ~/Articles/ArticleHandler.aspx, 10/1/2014 10:52:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement