Back to list

World Bank chief economist confident China can achieve 8 percent growth

2012/04/17 19:02:13

Washington, April 16 (CNA) World Bank chief economist and Senior Vice President Justin Yufu Lin said Monday that he is confident China will be able to maintain 8 percent economic growth this year.

The Chinese authorities adjusted the country's economic growth for this year downward to 7.5 percent from 8 percent, but the World Bank, in its latest forecast for China's 2012 economic growth, only adjusted the figure downward to 8.2 percent from 8.4 percent, showing more optimism than the official Chinese estimate.

Lin, a former Taiwanese military officer who defected to China many years ago, said on the sidelines of a seminar in Washington, D.C. sponsored by the World Bank that although industrial countries are the main export destinations for China, the country has a vast domestic market and plenty of room to upgrade its industry.

These, coupled with private demand and investment, high savings rate, foreign exchange reserves and the government's financial situation, are relatively better than other countries.

"There should be no problem for China to maintain 8 percent growth this year," Lin said.

However, he was more conservative about the economic outlook for industrialized countries, saying that although their economic situations have stabilized, some basic questions remain, such as financial debts.

On a decision by China's central bank to widen the Chinese yuan's trading band against the U.S. dollar from 0.5 percent to 1 percent, Lin said that this "is a good policy." i

(By Lin Shu-yuan and Lilian Wu)