Peking University, April 1, 2019: Justin Yifu Lin, dean of the Institute of New Structural Economics, Peking University, said at a panel discussion of the Boao Forum for Asia's annual meeting in 2019 that China's economy will maintain reasonable and rapid growth.
China's GDP registered 6.6% year-on-year growth in 2018, the lowest growth rate since 1990. Analyzing the reasons, Justin pointed out that the slowdown of China's economic growth was partly due to the fact that the global economy had not fully recovered from the last financial crisis, which meant external demand had declined. Meanwhile, growth in other emerging economies, such as India, also slowed down last year. On the other hand, China had carried out a series of structural reforms, including cutting overcapacity, reducing excess inventory, deleveraging, and etc., which is essential for the sustainable development of China's economy in the future.
However, from the international point of view, the growth rate of 6.6% was still fairly fast according to Lin. Last year, China's economy contributed about 30% of world economic growth. This year, China's economic growth might accelerate slightly. This year and next, China would maintain a relatively reasonable and rapid growth rate according to Lin. Despite the uncertainties global economy might confront, Lin believed that China's economy could rely on domestic markets and resources to keep growing at a certain rate; meanwhile, the adjustment of China's economic structure would continue.
Justin pointed out that this year China's economy would focus its structural reform on the following two aspects: first, the reduction of cost, including corporate tax and other tax burdens. Second, measures to address the shortcomings and bottlenecks, covering industrial upgrading, environment, base infrastructure, urbanization and so on, which would attract investment, thus producing better economic and social benefits.
He added that China had sufficient financial resources to support such investments, including industrial upgrading, infrastructure improvement and so on, which enabled China's economy to maintain a relatively reasonable investment growth rate. A healthy economy with due growth speed would create enough employment, increase household income, and create a good condition for China to continue to promote reforms in various fields.
Written by: Chen Yubing
Edited by: Wei Yunqi
