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(chinadaily.com.cn)
Updated: 2008-02-22 15:42

The Chinese economy will not slow down after the Olympic Games in August, a well-known economist has said.

Li Yining, professor of economics at Peking University, says past experiences have shown the Games usually bring about economic boom to host countries. However, a slowdown happens after the sporting event, which is called an "Olympic slide" or "bursting the Olympic bubble."

However, he said such a scenario is unlikely to happen to China, citing its high speed of economic growth, the People's Daily reported Friday.

He offered three reasons for the so-called "Olympic slide" in other host countries.

"First, the Olympics could be regarded as a kind of economic resource that would likely be exhausted during and immediately after the Games. Secondly, investments attracted by the Olympics usually decrease after the event."

"And third, some of the employment created by the Olympics will end, which raises the pressure of people to find another job."

But, Li says, in China, the Olympics is just one reason behind the country's fast economic growth. It will maintain this high-speed growth for another 20 years. He attributes this to China being in the middle stage of its industrialization.

As a country with a huge market and growing domestic demands, there is no need to worry about the lack of new investment areas in China. Some demands for special goods will decrease after the Games, but new demands in tourism and other services will come soon given its huge population.

"The end of the Beijing Olympics will affect employment," Li says. "During this period, staff and workers will learn new skills and special training. Their skills will be greatly enhanced. In the environment of China's sustained economic growth, they can definitely get a job."

Though an "Olympic slide" will not happen, Li says it doesn't mean China's economic development will be smooth and easy.

He said there are some significant problems hindering its economic development, such as the slow rise of farmers' incomes, insufficient supply of some natural resources and the huge pressure on the environment.