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Business / Economy

Top planner optimistic about growth in H2

(Xinhua) Updated: 2014-08-07 09:33

BEIJING - China has showed confidence about the prospects for economic growth in the second half of 2014 and made targeted plans to stabilize growth and meet preset targets.

Over the past week, the National Development and Reform Commission (NDRC), the country's top planning agency, has released more than 10 statements on China's economic situation in the first half and requirements for economic work in the remainder of the year.

Those statements covered different areas of the economy, including investment, agriculture, regional development, transport infrastructure and its opening-up policy.

On Wednesday, the NDRC held a press conference on promoting development of production-related services in the second half and years to come.

Top planner optimistic about growth in H2
Infographic: China's economic performance in H1, 2014 
"Stepping up growth of production-related services is a significant move seeking growth impetus from economic restructuring and promoting steady economic growth, said Li Pumin, secretary general of the NDRC.

The commission has sounded an optimistic note in most of the statements on the back of relatively steady growth in the first half

China's economy showed resilience in these six months, with the growth rate rebounding to 7.5 percent in the second quarter from 7.4 percent in the first quarter, according to the National Bureau of Statistics.

The economy expanded by 7.4 percent in the first half, in line with the government's full-year target of around 7.5 percent.

Faced with great downward pressure, the government managed to keep economic growth in a proper range by adopting a raft of pro-growth measures, including stepping up construction of affordable housing, infrastructure building and encouraging private investment, the NDRC said in a statement.

The latest sign of improving growth momentum came last week with the release of the purchasing managers' index (PMI) for the manufacturing sector, which rose to a 27-month high of 51.7 points in July.

Economic recovery in China is gaining more traction as indicated by the PMI figures and there might be more easing measures as the country reiterated the importance of the economy growing at a proper pace, said a research note from Barclays.

Achieving a reasonable rate of growth is important, because many problems will be difficult to solve without it, according to a document released late last month after a meeting of the Political Bureau of the Communist Party of China's Central Committee.

In the second half, the country must strike a balance between reform, development and stability. At the same time it must find the balance between short-term targets and long-term growth, said the document, which added that the government should also coordinate economic and social development while improving people's livelihood.

The NDRC said priorities for the government's economic work in the second half include pushing forward major reforms, expanding consumption, ensuring a bountiful grain harvest and seeking steady foreign trade.

It added that promoting investment will also be key for sustaining steady economic growth.

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