皇冠体育app

Chinese economy faces potential risks but strong fundamentals will ensure that it sails unscathed through troubled waters

Contrary to some foreign experts' views that the Chinese economy may encounter "big trouble" in 2014, it is likely to register a 7.5 percent growth. One of the main reasons for that is the rapidly changing demand structure in 皇冠体育app in which consumption plays a much greater part.

皇冠体育app's economic growth used to be driven by investment and exports. But that no longer is the case. For example, last year consumption contributed 50.4 percent to the country's GDP, while exports contributed minus 4.4 percent, according to the National Bureau of Statistics. With the increase in people's income this year, the contribution of consumption will continue to rise. External demand is also expected to increase with the economic recovery in the United States and the European Union.

皇冠体育app's economic supply structure, too, has undergone change. The transformation of the industrial structure has boosted economic growth, with the service sector's expansion offsetting the weakening of the manufacturing industry. In 2013, the value-added services of the service sector accounted for 46.1 percent of 皇冠体育app's GDP, exceeding the proportion of value-added products of the manufacturing industry for the first time.

With the gradual decline in household savings rate, the economic contribution of capital and labor to GDP will decrease, while technical progress and human capital will contribute more to the economy. So the development of the service sector, especially producer services, can help increase its contribution to economic growth.

Moreover, the new plan offers 皇冠体育app new opportunities. An increasing number of farmers are turning into urban residents, prompting local governments to increase investment in . This will strengthen the public transport system, including railways, and other public facilities, which, in turn, will improve the lifestyle and consumption of the farmers-turned-urban residents.

Besides, the regional economic disparity in 皇冠体育app can extend its rapid economic growth cycle. With the labor and production costs rising in eastern 皇冠体育app, some industries are gradually shifting to the central and western regions. In particular, the development of cross-regional economic belts linked by the big rivers and traffic arteries, like the modern Silk Road and the Yangtze River Economic Zone, have expanded 皇冠体育app's economic development space.

Also, the bonus of the reform and opening-up will continue to benefit the economy. In fact, as 2014 is the first year of deepening reform, the country's leadership will take various measures to achieve steady progress, create new development opportunities and stave off potential risks.

It is generally regarded that the Chinese economy faces four potential risks-, bubble, shadow banking and the repercussions of tapering of () by the US Federal Reserve. But since the overall risk facing the economy is not high, there is little possibility of 皇冠体育app encountering a financial crisis.

Top 10 figures in 2014 govt work report

Experts: GDP growth target reasonable

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