China Continues to Drive Global Economic Recovery in 2011

The United Nations released its annual economic report Friday in Beijing. It indicates that east Asia represented by China and India will continue to lead the global economy out of a downturn.

Tingting has the story.

The report "World Economic Situation and Prospects 2011" indicates that China and India have sustained their leading roles in driving the economic recovery in Asia and the rest of the world.

It says gross domestic product in east and south Asia expanded by 8.4 percent last year, up from 5.1 percent in 2009. A moderate slowdown is expected in the near outlook with GDP forecast to grow on average by 7.1 percent in 2011 and 7.3 percent in 2012.

UN Under-secretary-General Sha Zukang explains.

"Though the momentum of the recovery of global economy will slow down, developing countries will sustain relatively robust growth. These countries have adopted active stimulus policies and effectively encouraged consumption. They have contributed greatly to the global economic recovery."

The report suggests that China will sustain its growth dynamics by its various tailored measures.

Policy reforms that aim to expand the coverage of social protection systems foster a more inclusive financial system and promote real wage growth. This has provided a major boost to household consumption and domestic market expansion.
China's National Bureau of Statistics says the national economy resumed annual double-digit growth of 10.3 percent last year. Consumer prices rose 3.3 percent, higher than the expected 3 percent.

Some say China's risk of inflation will increase this year.

Zhu Baoliang, Vice Director of the Department of Economic Forecasting at the National Information Center, says people do not need to worry about inflation given that the country's economic growth will be moderate in 2011.

"This year, the pressure on China's RMB appreciation is increasing. Exports will decrease. And investment, especially in the real estate sector, will cool down. All these point to a moderate economic growth."

The UN report predicts China's GDP growth rate to decelerate to 8.9 percent in 2011 and 9.0 percent in 2012.

Economic experts predict the country will contain inflation within 5 percent.

For CRI, I'm Tingting.