CHINA - China's economy is regaining momentum and growth of the world's second largest economy will exceed 7.5 per cent in 2012. But, the groundwork for an economic rebound still needs more work, the head of China's economic planning agency said on Saturday.
Signs of an uplift in the economy were obvious in October and China will likely achieve its economic growth target for this year, said Zhang Ping, minister of the National Development and Reform Commission.
Zhang said China's fiscal revenue in 2012 is expected to increase to 12.7 trillion yuan (S$2.5 trillion), compared to 10.37 trillion yuan in 2011.
The country's growth slowed to 7.4 per cent in the third quarter of the year, a decline for the seventh consecutive quarter, sparking concerns that China may repeat the economic downturn seen in 2008 as a result of the global financial crisis.
But Zhang said the slowdown this year was partly due to government intervention, as a more moderated pace would allow leeway for China to shift its growth model.
"Many factors contributed to this year's slowdown. The government has taken the initiative to lower this year's growth target to 7.5 per cent to realise more sustainable development of the Chinese economy," said Zhang at a news conference Saturday during the 18th National Congress of the Communist Party of China.
External conditions also affected growth. The sovereign debt crisis in Europe has yet to be solved, growth in other major economies had been pessimistic, and these factors have dragged down the growth of emerging economies.
"China, as a big economy, became deeply involved in the process of globalisation. The worldwide slowdown and weak external demand also had impact on China," he said.