Source: CCTV.com

04-17-2009 11:11

Special Report:   Global Financial Crisis

China's gross domestic product expanded 6.1 percent during the first quarter of this year. Analysts say the growth rate is within expectation, and say there are signs of economic recovery.

China's gross domestic product expanded 6.1 percent during  the first quarter of this year.

A government think tank says the economic data released yesterday, including the 6.1 percent GDP growth, shows that China's economic stimulus plan is taking effect.

Bi Jiyao, Foreign Economic Research Institute, NDRC, says, "industrial output increased eight percent in March. It's much higher than the previous two months."

Fixed asset investment, retail sales, and credit have increased significantly during the first quarter. Meanwhile, the Purchasing Managers Index, a measure for manufacturing activity, has increased for four consecutive months. Some say that these figures mean China's economy has bottomed out. But Bi Jiyao remains cautiously optimistic about the situation.

Bi Jiyao says, "industrial output in the US and Euro-zone dropped sharply in the first two months of this year. A similar situation can be seen in Japan. This means it's very hard to boost China's external demand in the short term."

But he says there is still potential in domestic demand. China's plan to reform health care is expected to ease the burden for residents. But he added that to further boost demand, the government should make more efforts on improving social welfare.

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Editor:Qin Yongjing