China confident of achieving 8 per cent economic growth

China will be able to meet its target of 8 per cent economic growth in 2009, says a senior official of the economic planning body, echoing what Liu Tienan, vice minister of the National Development and Reform Commission had said at a press conference earlier in February this year.

Speaking at a media briefing in Hong Kong, Xulin, head of the department of fiscal and financial affairs of the National Development and Reform Commission, said, "Judging from the indicators of the first four months, I do believe that it is highly possible to achieve the target of eight per cent growth for 2009."

He added that the basic assessment was that there has been consolidation in the recovery momentum and a minor slowdown in April, which is normal considering the past experience, and does not necessarily signal a second bottoming out in the ongoing economic downturn.

The ministry of commerce had reported $17.94 billion of business volume in overseas-contracted projects in the first four months, up 36 per cent from the same period last year.

The National Bureau of Statistics reported China's industrial output grew 7.3 per cent in April from a year earlier, which was lower than the 8.3 per cent recorded in March. (See: China's April industrial output grows at 7.3 per cent, lower than March's 8.3 per cent)

The country's economic planners are monitoring the economy closely and are ready to come out with more measures in the coming months to prop up the economy, if necessary, said Xulin.

Small and medium enterprises were recipients of financing aid from guarantee programmes, Xulin told local as well as foreign reporters.

The National Development and Reform Commission is expected to sanction 600 billion yuan ($88 billion) of corporate bonds this year as against 236 billion ($35 billion) for 2008, said Xulin.

The Chinese government expects budget deficit of 950 billion yuan ($139 billion) or 2.8 per cent of gross domestic product (GDP) for 2009.

Compared to economies world over, Chinese government debt was around 20 per cent of GDP, while that of Japan was over 190 per cent, US nearly  100 per cent and around an average of  60 per cent for the European economies.

"The Chinese government will put in more resources to develop public housing programmes, a pension system and will push forward the health reform, in order to increase the contribution of domestic consumption to economic growth," said Xulin.

Xulin felt that export may not play the same roles as they did in past few years in driving the Chinese economy and added China would like to see a moderately stable yuan being a responsible player.

However, though China's economy in general has showed a upward trend in the first quarter, the year-on-year exports continued to fall sharply, making it one of the biggest constraining factor in China's current economy from bottoming out. (See: China's exports plunge, investment surges amid mixed cues)