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[NPC&CPPCC] Justin Yifu Lin: This year China’s economic performance will be promising

MAR . 24 2017

Peking University, Mar. 18, 2017: “I am optimisticwith China’s economy this year ”, said Justin Lin at the 2017 Chinese People’s Political Consultative Conference (CPPCC). As the member of the CPPCC National Committee and famous economist, every year Lin attends the conference to talk about his own views on China’s economy.

"I totally agree with the overall plans of 2017 government work report. While implementing structural reform on the supply side, we should put more of our focus on lengthening the short stave”. He supported his conclusion with statistics:“at the beginning of 2016, the World Bank predicted the growth rate of GDP in the world's major countries. At the end of the year, the actual growth rate of the United States, the European Union, Japan and other developed countries and regions did not reach the forecast level. In last year’s government work report, China’s predicted GDP growth rate was between 6.5% and 7.0% while the World Bank's prediction was 6.7%. In the end, China realized these two expected objectives.”In accordance with the data provided by Lin, it is no doubt that China’s economic achievement is dazzling in 2016.

The government work report pointed out that the GDP growth objective for 2017 was 6.5%, which is the seventh year’s consecutive slowdown since 2010 and the lowest since 1990. Despite some internal problems, China as the largest economy in the world is inevitably affected by the global economy. But Lin remains a positive attitude still.

"China's growth rate was 10.6% in 2010 and 6.9% in 2015. Russia's growth rate was 4.5% in 2010 compared to -3.7% in 2015 while India’s growth rate was 10.3% in 2010 compared to 6.5% in 2016. In addition, Singapore and South Korea have also experienced similar declines since 2010,” said Lin, "therefore the reason why China’s growth rate is declining is more due to the external and cyclical conditions while internal structural problems can’t be neglected either.”

We cannot control and resolve the external conditions, thus we can only pay our attention to internal potentials. Lin thinks that to drive the internal growth, two points are very important: investment and consumption. From the point of investment, although problems of excess manufacturing capacity exist, the space of industrial transformation and upgrading is very large. As a result, there are many opportunities for investment. From the point of consumption, Lin holds that China's private savings are as high as 45%, ranking the top ones of the world. And there are many foreign exchange reserves, too. If we can make the best of these advantages while maintaining a certain investment growth rate, we can create more jobs. Lin also suggests that to lengthen the short stave should be of uppermost priority.

Written by: Liang Youle
Edited by: Shengnan Yan
Source: PKU News (Chinese)