Spending by government may boost economy

    Updated: 2011-12-14 07:11

    By Cynthia Chen (China Daily)

      Comments() Print Mail Large Medium  Small 分享按鈕 0

    BEIJING - The government has room for maneuver on the economic front if the US outlook does not improve and Europe remains mired in the debt crisis, a deputy chief of the World Bank said.

    "Government spending, rather than bank lending, may be used to boost the infrastructure and manufacturing sectors to ensure economic expansion in 2012," Lin Yifu, the World Bank's senior vice-president and chief economist, said in an interview with China Daily.

    Spending by government may boost economy

    Lin acknowledged that the eurozone's worsening sovereign debt crisis as well as the sluggish US economy would take a toll on the world's second-largest economy in the coming year. But a hard landing is unlikely, he said, and predicted that GDP growth will stay above 8 percent in 2012.

    He was speaking as senior Chinese leaders held their annual Central Economic Work Conference in Beijing to hammer out a framework for 2012 economic policies.

    President Hu Jintao said last week that the country will maintain robust economic growth in the year ahead. Prudent monetary and proactive fiscal policies may come more into play.

    However, a slight shift in macroeconomic policies is possible, considering that inflation has eased, analysts and economists have suggested.

    The November consumer price index (CPI), a main gauge of inflation, declined sharply to 4.2 percent, the year's lowest, from a 37-month high of 6.5 percent in July, according to the National Bureau of Statistics. Economists predict that inflation in 2012 may drop to less than 4 percent.

    Wang Tao, head of China economic research at UBS Securities, expected slightly more flexibility.

    "The government is likely to target 8 percent GDP growth and 4 percent inflation in 2012, supported by a proactive fiscal policy and a stable monetary policy," she said.

    Government investment is expected to contribute more to GDP next year, Lin said.

    "The government has much less debt (about 25 percent of GDP) than many developed countries, so any concern about a debt crisis in China is groundless," he said.

    "But bank lending should be tightened because easing monetary policy may increase market liquidity and inflation may be revived."

    China's fiscal revenue had climbed to 9.73 trillion yuan ($1.53 trillion) at the end of November, 26.8 percent higher than a year earlier.

    It exceeded the year's budget of 8.97 trillion yuan for central and local governments, according to data released by the Ministry of Finance on Sunday.

    Meanwhile, fiscal expenditure increased to 8.9 trillion yuan, a year-on-year increase of 24.3 percent, the ministry said.

    Some economists forecast that policymakers might cut taxes next year to spur domestic consumption while funding infrastructure projects.

    Xia Bin, a member of the monetary policy committee of the People's Bank of China, said that fiscal policies are crucial for economic restructuring.

    Effective fiscal spending can support the upgrade of strategic industries, including those in the energy and high-tech sectors, especially for small- and medium-sized companies, he said.

    Lin said that sluggish developed economies can learn from China's stimulus launched after the 1997 Asia financial crisis.

    "The key is to increase productivity in the core economy and lower unemployment by increasing manufacturing rather than expanding the financial system," he said.

    China rolled out a stimulus of 4 trillion yuan in 2008 to combat the financial crisis, and the package helped its economy grow 8.7 percent in 2009, the best performer of the world's major economies.

    人妻系列无码专区久久五月天| 中文精品久久久久人妻不卡| 中文字幕亚洲乱码熟女一区二区| 免费无码作爱视频| 久久精品无码一区二区三区免费 | 久久精品中文字幕有码| 免费无码VA一区二区三区| 久草中文在线观看| 无码日韩人妻AV一区二区三区 | 欧美日韩亚洲中文字幕二区| 国产AV无码专区亚洲Av| 精品无码成人片一区二区98| 日韩乱码人妻无码系列中文字幕| 久久精品无码一区二区app| 未满小14洗澡无码视频网站| 无码国产精品一区二区免费式影视| 日韩一本之道一区中文字幕| 91嫩草国产在线无码观看| 日韩精品人妻系列无码专区| 免费a级毛片无码a∨免费软件 | 国产AV无码专区亚洲AV毛网站| 特级做A爰片毛片免费看无码| 国产中文字幕在线| 色噜噜亚洲精品中文字幕| 四虎成人精品国产永久免费无码| 精品无码久久久久久午夜| 日韩乱码人妻无码中文字幕久久| 亚洲AV无码久久精品蜜桃| 精品无码一区二区三区电影| 成人无码区免费A片视频WWW| 中文字幕av日韩精品一区二区| 最近免费2019中文字幕大全| 久久久久久久人妻无码中文字幕爆| 亚洲高清中文字幕免费| 亚洲综合中文字幕无线码| 伊人久久大香线蕉无码麻豆| 亚洲av无码一区二区三区人妖| 中文无码熟妇人妻AV在线| 精品久久久久久中文字幕大豆网 | 免费a级毛片无码a∨免费软件| 国产欧美日韩中文字幕|