Wednesday, 4 March 2009
8pc growth will be tough task, minister admits
Two ministers in charge of economic affairs voiced caution on the economy yesterday, with one saying that the goal of maintaining an 8 per cent growth rate this year would be difficult and hinting that the central government would need further stimulus measures.
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8pc growth will be tough task, minister admits
Cary Huang in Beijing
4 March 2009
Two ministers in charge of economic affairs voiced caution on the economy yesterday, with one saying that the goal of maintaining an 8 per cent growth rate this year would be difficult and hinting that the central government would need further stimulus measures.
“It is very difficult to achieve an 8 per cent GDP growth this year,” Industry and Information Technology Minister Li Yizhong said.
Commerce Minister Chen Deming also hinted that the government might have to take more drastic measures, though he was confident the growth goal could be met.
Asked whether the nation should double its announced 4 trillion yuan (HK$4.5 trillion) stimulus package, Mr. Chen replied: “Our policy will change according to the actual situation.” He did not elaborate.
Acknowledging the difficulties, Mr. Li called for the public to have confidence and patience as it would take time for the stimulus package to take effect.
He said the government would issue more policies, such as measures to boost domestic demand and stabilise exports, promote technical upgrades, and restructure industries through mergers and acquisitions.
When asked how confident he was of achieving 8 per cent growth, Mr. Chen refused to comment, but he said his confidence would be “more than doubled” after listening to Premier Wen Jiabao’s work report tomorrow.
The leadership believes the country needs at least 8 per cent GDP growth to keep unemployment under control and to avoid social unrest.
However, many international experts and bodies such as the International Monetary Fund have forecast a much lower growth rate.
Li Decheng, director general of the China Enterprise Federation, said the economy was facing “unprecedented challenges” as many companies struggled for survival. The mainland’s economy has slowed sharply since the global financial crisis hit the nation’s vital manufacturing and export sectors hard, leaving at least 20 million migrant workers without jobs.
The annual session of the Chinese People’s Political Consultative Conference opened in Beijing yesterday with a top Communist Party official issuing a call “to work hard to strengthen the great solidarity and unity with our compatriots in Hong Kong, Macau and Taiwan and overseas Chinese”.
In the day’s keynote speech, CPPCC chairman Jia Qinglin called on Hong Kong delegates to play bigger roles in both local and national affairs.
Mr. Jia also urged bosses of private firms not to lay off workers as the country was facing “complex and severe” economic conditions.
“We encourage people from the non-public sector ... to shoulder their share of social responsibilities and work hard to ensure that no employees in their enterprises are laid off, or suffer pay cuts, or wage arrears, in order to create harmonious labour relations,” Mr. Jia said.
The CPPCC is meeting in conjunction with the annual parliament, the National People’s Congress, which begins its session tomorrow to pass laws and vote on the budget.
“Reassuring [the people] is an important way the government maintains stability,” said Mr. Jia, the fourth-ranked leader in the Communist Party leadership.
Mr. Jia also expressed his support for the government’s handling of unrest in Tibet and other parts of the country.
“We unequivocally support the party and government’s handling of the violent crimes, rioting, looting and burning committed in Lhasa and other places, in accordance with the law,” he said.
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