Analysts believed adjusting development pattern in the government's statement meant it was to enhance the role of domestic demand and break the country's growth from dependence on export and government pump-priming to drive post-crisis growth.
Chinese government has announced a series of measures to boost domestic demand since the fourth quarter last year as exports waned after the global financial crisis. These included tax cuts for auto and property purchases and subsidies for home appliances purchase in rural areas.
The country's economy rose 7.7 percent year on year in the first nine months. Consumption contributed 4 percentage points to the GDP growth, investment 7.3 percentage points while exports subtracted 3.6 percentage points.
In the latest effort to spur consumer spending with improved residents' purchasing power, Zhang Ping, minister in charge of the National Development and Reform Commission, said Wednesday that the government would step up research on optimizing the income distribution mechanism and continue to raise the earnings of the middle and low income groups.
China's "growth is likely to be more broad-based next year, with the increased contributions from consumption and net exports, while investment becomes a less influential source of growth," Peng Wensheng, analyst with the Barclays Capital, said in an e-mail to Xinhua.
Peng expected China's economy to grow 8.6 percent year on year in 2009 and 9.6 percent in 2010.
Gross capital investment was expected to contribute 7 percentage points to the forecasted 8.6-percent GDP increase this year, consumption would take 4 percentage points while net exports would subtract 2.4 percentage points, Peng said. In 2010, gross capital investment, consumption and net exports was expected to contribute 4.9 percentage points, 4.2 percentage points and 0.5 percentage points to China's growth, respectively.
|