News Room - Business/Economics

Posted on 09 Jun 2009

China needs up to three years to regain rapid growth

China’s economy has bottomed out but will need two to three years to regain its rapid growth, a researcher with the country’s top think-tank was quoted by state media as saying.

 

“Although the economy has bottomed out, it is touching a flat bottom, instead of a V-shaped bottom,” Zhang Wenkui of the State Council’s Development Research Centre was quoted by Xinhua as saying on Sunday.

 

“The recovery will be very mild and unstable,” he added. “It will not be stable, quick and sustained.”

 

Although China’s fixed asset investment jumped 30.5% in the first four months, Zhang said that mainly came from government-sponsored infrastructure projects.

 

Another critical driver of the economy – exports, which fell 22.6% in the first four months – is a drag on economic growth, he added.