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Chineseeconomymightbecome“overheated”

来源：育路外语考试频道发布时间：2008-08-05

Chinanews, Beijing, Apr. 20 – During the first quarter of this year, China’s GDP output reached 5.03 trillion yuan, increasing by 11.1% compared with the same period last year, and 0.7 percentage point higher than related growth rate last year. On Thursday, spokesman of the National Statistics Bureau Li Xiaochao said that at present, economic operational speed seems to quicken. If such trend continues, Chinese economy may turn from being hot to being overheated.
　　 Whether Chinese economy is overheated or not is linked with many aspects. Therefore before we make any judgments on this issue, we also needed to take all things into consideration. In order to make any conclusion on this issue, we should basically look at two factors: the price index and whether the fast growth of the economy has caused pressure on material supply. During the first quarter of the year, consumer price index increased by 2.7% and rose by 3.3% in March, which led to some sort of inflation pressure. However, if we allow for the food price rise by 1.5% in the previous year, we will see that the actual price increase reached only 1.2% during the first quarter, which was relatively at the same level as that of last year. In regard to material supply, we can see that China has maintained a fast economic growth for thirty years and the country’s opening-up has deepened. At present, China has relatively sufficient material supply. In some aspects, China can utilize international resources. So far, there was a relatively stable supply of coal, electricity and oil at home, Li Xiaochao said.
　　 Considering all these factors, Li said the national economy is still developing steadily. The economic operational speed seems to be quickened. If such trend continues, Chinese economy may turn from being hot to being overheated, he reiterated in conclusion

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