In an effort to maintain pro-growth policies aimed at fighting the global turn-down, China will target 8% economic growth next year, Li Yizhong, Minister of Industry and Information Technology said on Dec. 21.
"Based on the central government's target for around 8% economic growth, we're aiming for around 11% growth in industrial output," said Yizhong. "The recovery base has been gradually consolidated and the micro-economic policies will still be in place to boost the economy next year."
Li further warned against "blind optimism" as the industrial recovery was mainly supported by government investment and bank loans rather than private investment, he said. "The growth pace is necessary, achievable and appropriate. We will not set the target too high," he said.
China's economy grew by 8.9% in the third quarter -- the fastest pace in a year -- after expanding by 7.9% in the second quarter and 6.1% in the first three months, the slowest pace in more than a decade.
Last month, the World Bank upgraded its 2009 growth forecast for China to 8.4% on the back of huge public spending but said stronger domestic demand was needed to ensure a sustainable recovery.
Copyright Agence France-Presse, 2009