Yao Jingyuan: China's economy still faces two major problems next year

Yao Jingyuan, chief economist of the National Bureau of Statistics, said in Beijing on the 6th that there will be no suspense in the growth of the Chinese economy to achieve more than 8% in 2009, and next year China will continue to face two major problems: the continuous deterioration of external demand and the lack of market internal motivation.

Yao Jingyuan expressed this at the second annual meeting of the Asian Fortune Forum (China). At the same time, he pointed out that while the overall economy has stabilized, the deeper problems in China's economic development have not been fundamentally resolved. In the first three quarters of this year, China’s economy maintained a growth rate of 7.7%, of which investment contributed 7.3% and consumption contributed 4 percentage points, but the contribution of exports was a negative 3.6 percentage points. These data show that the current economic growth is still dependent on investment, and shrinking external demand and insufficient domestic demand are still problems that plague China’s economic development.

Yao Jingyuan emphasized that the growth has achieved significant results and greater efforts have been made to adjust the structure. From the perspective of production, we must adjust economic growth to rely on the secondary industry to fully develop the primary, secondary, and tertiary industries. From the perspective of consumption, we must do everything possible to increase income, increase investment in people’s livelihood projects, and exert the influence of consumption on the economy; in addition, we must Economic growth depends on the consumption of material resources and it is adjusted to rely on technological innovation.

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