Although the slowdown in the world economy has begun to impact negatively on China's economy, major economic indices continue to show encouraging results, Qiu said.

During the first three quarters of the year, the country's gross domestic product (GDP) rose 7.6 per cent to 6,722.7 billion yuan (US$810 billion).

The fiscal revenue exclusive of debt income reached 1,187.2 billion yuan (US$143 billion) during the period, up 24.2 per cent from the same period last year.

The consumer price index (CPI), Chinese policy-makers' key inflation gauge, rose 0.9 per cent during the first 10 months of the year compared with the same period last year.

"The macro-efficiency and inflation were all in safe areas, which gave much room for the country's macro-economic control," said Qiu.

He admitted that the Chinese economy still had some problems, including shrinking exports, slow income growth of rural residents and pressure from unemployment.

"Looking into the future, although we're facing many uncertain factors, the world's common idea to stabilize the economy and fight against terrorists will be beneficial to China's economic development," Qiu said.

The country has also much room to implement the policies of expanding domestic demand.

"The economic growth of 7.0 per cent for this year and in 2002 is obtainable," he said.

Earlier, the Asian Development Bank (ADB) said this year's GDP is expected to top 7.3 per cent.

The bank further predicted that in 2002, the GDP is expected to grow 7 per cent.

"The September 11 terrorist attacks in the United States are likely to cast shadows on the Chinese economy in the last quarter of this year and the first half of next year," said Tang Min, chief economist of the ADB Resident Mission in China.

The country's export growth may drop to 6 per cent this year and 4 per cent in 2002 as global demand shrinks, he added.

But the ADB believes that China will continue to maintain favourable growth next year as investment remains strong due to large public investment programmes and a high inflow of foreign direct investment.

The ADB also predicts that as residents' incomes rise and public servants' salaries increase, China's consumption growth rate will remain buoyant in the future.

(China Daily November 20, 2001)