China’s Potential in Economic Growth Lies in Improved Efficiency
China’s gross domestic product grew by 6.9 percent during the first three quarter of the year and down 0.1 percentage point from the first half of the year and 0.4 percentage point over the annual growth last year. This decline is de facto modest and normal. But given the size of the economy the decline couldn’t be further from the normal as the country is undergoing a profound structural adjustment and upgrading with shifting growth momentum.
China’s economy is slowing down but is still within range. First the traditional economy is facing a mounting downward pressure and international economic growth that falls short of expectations. The government is already taking positive steps that will strengthen targeted control, boost structural adjustment and deepen reforms in a bid to keep an overall growth within a reasonable range. Downward pressure originates from the decline of exports, investments and industries and between January to September exports fell 1.9 percent which is significantly lower than expected. The decline is understandable since the world economy is still undergoing a readjustment and its taking time for new growth to take off as the foundation for global recovery is shaky.
A fixed asset investment grew by 10.3 percent during the same period which is down by 5.8 percentage points from a year earlier and with that the real estate investment have increased just 2.6 percent and down 9.9 percentage points from last year. Industrial added value increased 6.2 percent down by 2.3 percentage points over the same period last year. Even that the country’s economy is stabilizing and on the other hand the economic growth and employment is still steady. The first three quarters have witnessed GDP growth of 7 percent, and 6.9 percent respectively. This is consistent with the annual target set at the beginning of the year and more than 10 million urban jobs were created in the same period that meet the annual target ahead of time.
Consumer prices remained sound for the first three quarters and the Consumer Price Index was sped up but came at 1.4 percent on average from January to September. No inflation or deflation was recorded and at the same time consumption, home sales and income were growing steadily. China’s economic growth stands around 7 percent are still more than twice the world average ad tops all emerging economies. Most importantly its one of the world’s dynamic countries that is underpinned by reform and opening up.
The economy is undergoing structural optimization and upgrading is steady albeit decelerated growth the development mode is shifting rapidly and partly driven by a growing enthusiasm of innovation and entrepreneurship and breakthroughs in international capacity.