Chinese economist calls for immediate readjustment of nat’l income distribution pattern
Tuesday, 30 October 2007
BEIJING, Oct. 29 (Xinhua):In a bid to ensure a good and fast development of the national economy, China need adjust the national income distribution pattern, said Li Yang, head of the Financial Research Institute of the China Academy of Social Science.
Chinese economy now is in trace of stable and a little rapid growth, said the economist in the autumn analysis report of China's macro economy, adding that the potential growth of China economy is at a range from 9.5 per cent to 10.7 per cent, and the corresponding inflation rate is 3-5 per cent and labor transfer rate, 0.91- 1.72 per cent.
The long-lasting phenomena of high deposit rate, high investment and high export is decided by a series of non- financial factors such as system, mechanism, development phase and population, and the long- growing high deposit rate makes China economy have to depend on the material basis of investment and foreign trade.
The economist pointed out that the relative growth of the government and corporate deposit rate and the relative decline of the resident deposit rate have amplified the harmful result of the high investment and high export.
With a view to maintaining the healthy development of China economy, Li noted, China must devote more efforts to adjusting the national income distribution pattern and realising the target of social fairness to stimulate consumption and change the economic growth mode of over-reliance on investment and foreign trade.
In respect to the financial situation, Li pointed out that the M1 growth has accelerated and M2 growth slowed down, and such a change results from the adjustment of resident asset portfolio, and it doesn't mean a bigger pressure on inflation.
Among deposits, resident deposits are declining, corporate deposits remain stable and fiscal deposits grow remarkable. Such a trend indicates that government share in the national income distribution keeps on increasing while that of residents goes on shrinking. So adjusting the national income distribution has become a main task of China's macro economic control.
Chinese economy now is in trace of stable and a little rapid growth, said the economist in the autumn analysis report of China's macro economy, adding that the potential growth of China economy is at a range from 9.5 per cent to 10.7 per cent, and the corresponding inflation rate is 3-5 per cent and labor transfer rate, 0.91- 1.72 per cent.
The long-lasting phenomena of high deposit rate, high investment and high export is decided by a series of non- financial factors such as system, mechanism, development phase and population, and the long- growing high deposit rate makes China economy have to depend on the material basis of investment and foreign trade.
The economist pointed out that the relative growth of the government and corporate deposit rate and the relative decline of the resident deposit rate have amplified the harmful result of the high investment and high export.
With a view to maintaining the healthy development of China economy, Li noted, China must devote more efforts to adjusting the national income distribution pattern and realising the target of social fairness to stimulate consumption and change the economic growth mode of over-reliance on investment and foreign trade.
In respect to the financial situation, Li pointed out that the M1 growth has accelerated and M2 growth slowed down, and such a change results from the adjustment of resident asset portfolio, and it doesn't mean a bigger pressure on inflation.
Among deposits, resident deposits are declining, corporate deposits remain stable and fiscal deposits grow remarkable. Such a trend indicates that government share in the national income distribution keeps on increasing while that of residents goes on shrinking. So adjusting the national income distribution has become a main task of China's macro economic control.