Economists optimistic about China’s 2013 outlook

16  January 2013

NEW YORK – China’s economic growth in 2013 would be stabilized and outperform that of 2012 and the country should accelerate economic reforms, a group of renowned economists said in New York on Monday.

The Chinese economy would grow at 8-8.5 percent this year, faster than in 2012 and with inflation under control, Justin Yifu Lin, former vice president and chief economist of the World Bank, said during a forum on China’s economic forecast jointly held by the National Committee on US-China Relations and China Center for Economic Research.

 

A truck drives on a highway in Sixian county in Guangxi Zhuang autonomous region, Dec 18, 2012. [Photo/Xinhua]

Lin said investment would continue to be a strong driving force for the Chinese economy, adding that households’ income and domestic consumption would also expand rapidly.

He is also confident that China could maintain an average growth rate of 8 percent in the next 20 years as there are still great potentials in industrial upgrading and infrastructure investment.

In the meantime, he suggested that China deepen market-oriented reforms and accelerate reforms in its social security system and income distribution.

“As the new government of China is just in the corner, in the next few years China’s growth will not only stabilize but will accelerate,” said Huang Haizhou, chief strategist at China’s International Capital Cooperation (CICC). He expected the economic growth to reach 8.1 percent in 2013.

Lu Feng, director of China Macroeconomic Research Center predicted China’s economy would grow 8.1-8.2 percent this year based on growth forecasts by research institutions.

Regarding reforms on the financial market, several experts called for acceleration of interest rate liberation, RMB internationalization and tighter regulations over shadowing banking and local government loans.