Others News
- Fixed-asset investment to grow 25%
Date: 30-Apr-2007 Sources: (Shenzhen Daily)
CHINA's investment in fixed assets may grow by one-fourth again this year, as the government seeks to maintain spending on key industries while curbing energy-wasting projects, a government researcher said.
'Despite the government's strengthened controls over local projects, fixed-asset investment may continue to grow at around 25 percent,'Zhang Hanya, a senior researcher at the National Development and Reform Commission's Investment Research Institute, said at a financial conference in Beijing on Saturday.
Urban investment in factories and real estate jumped 25.3 percent in the first quarter from a year earlier, rising from 24.5 percent for all of 2006, government data show.
China still needs the economy to grow around 10 percent a year and fixed-asset investment around 24 percent to boost demand at home and provide enough jobs, Zhang, the top planning agency's economist, said Saturday.
'The government wouldn't like to see investment expansion fall below 20 percent and economic growth shrink to lower than 8 percent such as around 1998, when the economy was slumping, and the government faced great difficulty in boosting domestic demand and easing unemployment,'he said.
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