|China has to fix economic imbalances, thinktank says
China must work harder to correct increased economic imbalances as it enters a new stage of development featuring lower yet more sustainable growth, according to a report released on Monday by the Chinese Academy of Social Sciences.
In 2014, China will face uncertain demand and much structural adjustment brought by its systemic reform, but the economy will be generally stable despite fluctuations, said the CASS's National Academy of Economic Strategy in its latest report.
China's adjustment of economic structure proved fruitful in 2012, but economic imbalances in some areas have exacerbated in 2013, meaning the improvement in economic structure must be strengthened with effective measures, the report cautioned.
It noted that the current economy faces serious overcapacity, complex price fluctuations, difficulty in adjusting the structure of investment and consumption, as well as potential financial risks.
Although China's previous stratospheric growth rate is unlikely to be attainable in the future, its endogenous ability to grow will be enhanced as it enters and adapts to a new economic cycle featuring lower but more sustainable growth, according to the report.
The research institute forecast slightly higher growth rates for the final quarter of 2013 and for 2014, given that no big changes will occur in economic policy.
The Chinese economy expanded 7.8 percent in the third quarter of 2013, up from 7.5 percent in the second and 7.7 percent in the first. --Xinhua