Don’t Overlook GDP and Investment: An Analysis of China’s Current Economic Trend*

Liu Shucheng
Economic Research Institute, Chinese Academy of Social Sciences (CASS), Beijing, China

 
Abstract: In this paper, we first examine various causes of China’s unexpected low economic growth rate since the beginning of 2012. Particularly, we propose the possibility of one tendency masking the other tendency. That is, there is a tendency of neglecting and downplaying GDP while making fewer efforts to develop economy in some regions that oppose GDP worship and irrational pursuit of and competition for GDP, which deserves our full attention. We further propose in this paper that the decline of China’s potential economic growth rate should keep a gradual process and the government should favor consumption while not overlooking investment, given that a certain amount of moderate investment will remain the key impetus to China’s economic growth over a certain period in the future.
Key words: economic trend, macro control, periodic fluctuation, stabilizing growth

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