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Voices on 2008 outlook for China's economy

(Xinhua)
Updated: 2008-02-20 21:13

BEIJING - China's economy is up against a triple threat of weakening global growth, possible domestic overheating and the catastrophic impact of recent severe weather.

It should still record high growth this year, according to analysts and economic organizations.

China was fighting strong economic headwinds as soon as 2008 started. Overseas, there's little dispute that the world economy is slowing as the impact of the US sub-prime crisis ripples throughout the world. Then there are volatile international financial markets and spiraling energy and food prices.

Domestically, China was hit by the worst snowstorms in half a century this winter, while it was fighting to prevent domestic economic overheating and curb inflation. The weather caused at least 111.1 billion yuan (US$15.43 billion) in losses, inflicting severe damage on farms and households, forests and the power grid.

To make things worse, consumer prices surged. The consumer price index (CPI) accelerated from 6.5 percent in December to 7.1 percent in January, the fastest pace in more than 11 years, on ballooning food prices.

Can China maintain steady growth this year? That is likely to be a key topic at the country's annual national congress, to be held next month, which is expected to work out measures to achieve prosperity.

Here are some views on the outlook for 2008 by economists and organizations in China and abroad.

On the positive side:

- Dominique Strauss-Kahn, the managing director of the International Monetary Fund (IMF), said during his visit to China last week that although there had been some impact from the sub-prime crisis on China, the IMF still expected the economy to expand by 10 percent this year.

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