| Exports Make Negative Contribution to GDP Growth
in 2008 Analysis and Forecast on China’s Economy published by the Chinese Academy of Social Sciences shows that China’s GDP growth will maintain 2008’s downward trend, hopefully staying at 9.5 percent in 2009. According to the report, after five years of high-speed growth, consumption, investment and exports have all slowed. In 2008, the contribution of consumption to GDP growth was 5.05 percent, while investment was 5.35 percent. Appreciation of the RMB and the sub-prime loan crisis in the US have seen overseas demand decline, meaning exports will make a negative contribution to growth this year, shaving 0.3 percent off GDP. The end of the report states: “Declines in domestic CPI mean the price of resources will be more reasonable. Therefore, promulgating relevant financial and taxation policies will create better conditions for accelerating energy market reform.” |
