Stable growth 'paves way for reforms'

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Stable growth 'paves way for reforms'

By CHEN JIA (China Daily) 10:24, October 19, 2013

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China's GDP expanded by 7.8 percent in the third quarter, figures showed on Friday, but economists say economic restructuring remains difficult.

The year-on-year growth from June to September is the highest so far this year, according to the National Bureau of Statistics.

Analysts said such a rate will help boost policymakers' confidence when they map out the next round of reforms at a top leaders' meeting in mid-November.

In the first three quarters of the year, year-on-year GDP growth averaged 7.7 percent, exceeding the government's target of 7.5 percent for the whole year.

"As the main economic indicators remain within a reasonable range, more efforts should be made to promote reforms and opening-up, and to further transform the growth pattern for long-term development," National Bureau of Statistics spokesman Sheng Laiyun said on Friday.

Economist Ma Guangyuan was quoted by financial information website hexun.com as saying the latest growth rate is not a surprise.

The key to the quality of China's economy is no longer how fast it can grow, but whether it can overcome industrial overcapacity, regulate shadow banking, manage government debts and rein in bubbles in real estate development, Ma said.

Duncan Freeman, a researcher at the Brussels International Institute of Contemporary China Studies, said the government is expected to strike a balance between sustaining growth and advancing reform.

"The fact that GDP growth remains relatively strong will strengthen the argument that China can afford to push forward with reform in a positive environment with less risk of negative outcomes for growth in the short term," Freeman said.

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