Given the global background that the world economic recovery was weak and the European sovereign debt crisis arose repeatedly, it is predictable that China’s economy growth rate would decrease to around 7.5% in 2012. In the first three quarters of 2012, the declined GDP growth rates abated gradually, the economy performed in stabilization as the whole and the agricultural sector ran well. Although the growth of industry sector lowered, the industrial structure continually optimized. Also, the consumption performed steadily with the support of domestic demands, and the investment grew rapidly as before. Because of the weak recovery in developed countries, however, the external demand reduced significantly. Furthermore, the employment market was basically stable, the income of households grew rapidly, and the inflation of commodity price lowered. All these together present an overall sound economic operation.
In 2013, although the global economy will still be in complex situations and some deep level problems of China’s economy will remain unresolved, there are many conditions in favor of China’s stable and rapid growth. The growth rate of China economy will depend on the global economic conditions and the progress of domestic deep level structural adjustment.
Remaining stable growth is a key target of current China’s economic operation. Meanwhile it is also important to deal with the relationship between the stable growth and the economic structure adjustment, and between the structural transformation and the deepening reform. We should optimize the investment structure by stabilizing the investment growth, and maintain stable and rapid GDP growth by reducing the VAT rate appropriately and expanding the structural tax cuts. Also, we should cultivate the long-term economic growth potential by improving the technical and institutional innovation and enhancing the labor force’s quality.
