Source: CCTV.com

04-19-2007 10:04

China's statistics bureau will release first-quarter economic figures Thursday afternoon, 5 hours delayed of previous schedule. And analyst say, they are expecting an exceptionally strong batch of data. Since many indicators show China's fast-running economy has not been derailed.

Many economists believe that first quarter economy is growing at double-digital rate, as the three major forces to drive economy: investment, consumption and export all maintained strong momentum. Urban fixed-asset investment in the first quarter grows over 25 percent. Foreign trade surplus reached 46 billion US dollars, a hundred percent increase, and retail sales were up 15 percent. The excessive liquidity is also developing. Central bank's figures show first quarter RMB loans increased 1.4 trillion yuan, although it raised interest rates in mid-March and has raised banks' required reserves three times this year in an effort to cap the gush of cash flooding the banking system.

The Central bank are also worried that the inflation in March may exceed the 3 percent threshold, which could could put the one-year deposit rate into negative territory in real terms, and lead to another interest rate rise in coming weeks. CPI rose 2.7 percent in February after 2.2 percent in January.

Another problem that fuel worries about the economy is the developing of high energy consuming industries. As electricity shortage is basically alleviated, some of them loosened their control. Electricity consumption increased more than 16 percent in January and February period. China's top planner is urging local authorities to adopt different electricity prices toward eight high energy-consuming industries. The move aims to limit energy consumption and protect environment.

Many Economists say, although China has put more focus on the quality rather than just magnitude of growth, many problems has not been resolved, some of which are even developing, such as excessive liquidity, high energy-consuming, and deterioration of environment. And the over-heating economy is putting more pressure on the sustainable development in the long term. They say the government should take more measures to cool the economy.

 

Editor:Li Yang