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China 'to add more to global growth'

By CHEN JIA in Beijing and GAO CHANGXIN in Hong Kong and YU RAN in Shanghai | China Daily | Updated: 2013-08-02 01:47

Hard landing unlikely in second half of year, says senior economist

China's contribution to the global economy will continue to increase this year, remaining a major engine for world growth, a senior economist from a top government think tank said on Thursday.

A sharp drop in GDP growth, or a hard landing, is unlikely in the second half of the year, Wang Yiming, vice-president of the Academy of Macroeconomic Research under the National Development and Reform Commission, said at a news conference.

Wang also said the 7.5 percent growth target for the year will be achieved, with an inflation rate of less than 3 percent.

Ongoing reforms will further strengthen sustainability of the Chinese economy, Wang said.

"Deepening the rebalancing of reform is the key to upgrading the economic growth pattern," Wang said, adding that the Third Plenary Session of the 18th CPC Central Committee, expected to convene in October, will give a framework for the overall reform design.

After the session, reform progress is likely to be faster than expected, he said.

Since taking office in March, the new central leadership has introduced market-oriented reforms in a wide range of areas, from cutting tax to easing controls in the financial sector.

The central bank scrapped the lower limit on bank lending rates last month, a step toward liberalizing interest rates. The government has also suspended business tax and value-added tax for small and medium-sized enterprises.

Wang said it is crucial to keep GDP growth within a reasonable range in the second half, although China's double-digit potential growth rate has fallen to between 7 and 8 percent.

"We are able to control the potential risks in local government debt and the financial system," he said.

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