Economists: Reforms should go with stimulus actions

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Source: | 03-22-2009 13:03

Also at the forum, some economists have praised the Chinese government's quick response to the financial crisis.

They say the country's stimulus package is on track to being used more effectively than stimulus initiatives in the US.

Many participants say China's stimulus package will likely to be used much more effectively than similar stimulus initiatives in the US. (CCTV.com)

The economists are also recommending various reforms to be expedited along with the stimulus measure to pave the way for sustainable development.

Economists at the forum say the Chinese economy is experiencing no major bubbles. They say the country has a favorable fiscal and financial condition as well as ample foreign exchange reserve resources.

And these factors enable China to have more flexibility for economic adjustments.

Meanwhile, many participants say China's stimulus package will likely to be used much more effectively than similar stimulus initiatives in the US.

Fan Gang, Director of National Economics Research Institute, said, "The Chinese economy has gained momentum in recent years. Before the financial crisis, the Chinese government even took effective measures to curb its economy from becoming overheated. In contrast to stimulus plans in the US... China's stimulus package will be virtually injected into real economies. And not just aimed at getting rid of poison assets. The measures are expected to stimulate market demand."

Participants are also pointing out that China should have a long-term vision paying special attention to the country's development over a longer horizon. They say further reforms at various levels should be strengthened during the crisis. They say this will help China to ensure sustainable development even after the crisis.