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China's economy to grow by 9.4 pct this year
(AFP)
Updated: 2005-12-04 19:21

China's economy will likely grow by 9.4 percent this year, and will see continued fast growth next year, Ma Kai, the State Development and Reform Commission's (SDRC) minister, has been quoted as saying by state media.

China's economy to grow by 9.4 pct this year
Chinese banknotes on display in Beijing. [AFP]

China's economy has been growing at an average rate of 9.5 percent in the past two years. Its gross domestic product ( GDP) grew 9.4 percent in the first nine months of 2005.

Speaking following a national gathering of top leaders and economic policy-makers, Ma said fixed-asset investment for the whole year is expected to increase by 25 percent, while retail sales will increase by 13 percent.

This year, the main inflation index, the consumer price index, will rise by no more than 2.0 percent, the Beijing Morning Post cited Ma as saying.

Next year, the government will aim for fast, stable growth for the Chinese economy, but will make more efforts to restrain overproduction to avoid overheating in several sectors, he was cited as saying by Xinhua news agency.

"More efforts will be given to addressing the challenges brought by oversupply in some industrial sectors," said Ma.

He warned that oversupply in the steel, coke and auto sectors are threatening jobs.

"If we don't effectively address the problem immediately, a large number of companies will go bankruptcy and many people lose their jobs," said Ma.

Statistics from his commission showed that in October, steel prices fell as low as those in 2003. Prices of some steel products are even lower than the production cost, Xinhua said.

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