Passage 2
China's GDP will maintain a growth rate of about 8. 9 percent in 2012, said the annual economic blue book released by the Chinese Academy of Social Sciences (CASS) on December 7. Though the growth speed is lower than in 2011, it is still relatively high rate.
Chen Jiagui, Director of the CASS Economic Department, said the Chinese economy is stable with appropriate ups and downs. A growth rate of 8-9 percent is ideal to create a good macroeconomic environment for deepening the reform, controlling inflation, adjusting the economic structure and transforming the economic growth pattern.
The Chinese economy has slowed down in the last two years, arousing worries from home and abroad about the Chinese economy's expected hard landing. Such worries are obviously unnecessary and the Chinese economy will continue to make contributions to the world economic recovery.
According to the blue book, compared with 2011, the Chinese economy will face new challenges next year. China mainly faced pressure from rapid inflation in 2011, causing the task of curbing inflation to top the list of government priorities for macro-controls. But in 2012 when the economic growth will likely slow, China needs to both stabilize the economic growth speed and further curb inflation and strengthen macro-control efforts.
Chen said thanks to the efforts in 2011, the rapidly growing prices have been curbed to some extent, but the main factors causing rapid price rises have remained unchanged. Today, prices in China are affected by the relationship between supply and demand, as well as the rising costs. Of the total, the producer price index (PPI) is mainly influenced by the relationship between supply and demand, while the consumer price index (CPI) is influenced by the rising costs.
21.China's GDP will maintain growth rate of 8.9 percent in 2012, which is higher than in 2011.