No need for concern over 7.4 percent growth of GDP


The public should be mentally prepared for the fact that the rapid development of the past decades is unlikely to recur in the future. Lower development will become the normality for China's economy after its transition.

According to statistics recently released by the National Bureau of Statistics (NBS), China's GDP in 2014 was 63.65 trillion yuan, the first time it has surpassed 10 trillion dollars. However, the annual GDP growth rate was only 7.4 percent. This was the lowest GDP growth rate for the past 24 years. 7.4 percent is very close to the 7.5 percent estimated in the Government Work Report published early last year. Consequently, there is no need to be overly concerned about this year’s GDP figure.

As a matter of fact, things will not get harder for China's economy in 2015. With the ease on monetary policy and fiscal policy, the improvement of efficiency in the political system after a full year of anti-corruption action, and a range of infrastructure projects that are waiting to be launched, it can be deduced that China's economic growth in 2015 is unlikely to fall much.

Though GDP growth hit a historical low in 2014, the underlying quality and strength of the economy improved significantly. The action of streamlining administration and delegating power to the lower levels has invigorated China's economy. Compared with last year, the number of people starting their own businesses is rising. And with the help of the campaign against corruption, social benefits have increased. More importantly, last year's jobs market was very stable in China. Taking all these factors into consideration, 7.4 percent does not seem like a poor result.

People should be prepared for a GDP growth rate in the realms of 7.4 percent - China cannot possibly continue to develop at the paceof previous decades. GDP growth is very important, but what is more important is the stability, adjustment, and optimization of the economic structure under the "New Normal" economy. As a result, the government should continue to invest in the economy in 2015, as well as reinforcing reform, encouraging innovation, and expanding free trade areas.

Source from : People\'s Daily Online