According to World Bank, China's economic
growth could decline up to 7 percent earlier next year but Beijing should center
on overhauling China’s economy instead of sticking to official growth targets.
WB officials suggest that in in
order to avoid sharper slowdown, it needs to promote efficiency by reforming labor
and its real estate markets and state-run financial system.
Trying to stick with the short-term
targets might set back by prompting officials to pump its credit into economy
and disrupt development of its markets, said by economist Smits.
Smit believed that the policy should
focus on reforms rather than meeting the specific growth targets. World Bank
report urging reform advocates say that the government President Jinping needs
to immediately move ahead with its ambitious plans to give the entrepreneurs
and its market forces bigger role in world's second—largest economy.
Based from its report, Economic
growth has slowed to five—year low 7.3 percent in latest quarter. That result is
largely due to government efforts to promote its growth based on the domestic
consumption and reduce its reliance on the trade and investment but raised
concern on possible job losses.
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