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chinanews, beijing, sept. 21 – general 1 of the state statistics bureau qiu xiaohua recently said in an academic report that before 2020, china should keep its gdp growth at around 7–8%, so as to keep a sustainable development in the economic field. if the gdp growth rate exceeds 9%, it might 2 affect the national economy.
in the report 3 made by qiu and some other 4, qiu predicts the three possible development trends for the chinese economy under a 7%, 8% or 9% gdp growth rate. based on the analysis, they conclude that before 2020, it would be acceptable for china to keep its gdp growth rate between 7-8%. the report analyses that if the gdp growth rate reaches 9%, china will encounter a big oil supply shortage. if investment exceeds certain amount, it will hurt economic structure and the economy will be unable to keep a sustainable development. if such gdp growth exceeds 9%, consumer price index, or inflation rate, will rise more than 5%. it is a well-known fact that when inflation rate exceeds 3%, it will be a dangerous sign to the economy. currently, china’s inflation rate is kept below 2%. capital and energy supply will be the two main factors to 5 china’s economic growth in future. in order to keep a sustainable development, china should shift its economic growth mode, from one that depends heavily on energy resources to one that promotes consumption.
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