Beijing prioritizes restructuring push
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From 2006 to 2010, retail sales in Beijing rose 16.4 percent annually. However, retail sales only rose 8.8 percent year-on-year in the first half, the slowest growth pace in 11 years. Provided to China Daily |
"The potential economic growth of Beijing is now between 7 and 8 percent, compared with 10 percent in past years. A growth pace faster than that will lead to shortages of resources and inflation, and would not be sustainable. A growth pace slower than that will cause unemployment," said Zhao Lei, deputy director of the Beijing Municipal Commission of Development and Reform.
"The municipality's economic growth in the first half was adequate. It's in line with the city's potential, supply of resources and the restructuring drive, and thus is moderate and sustainable," Zhao said.
He added that the restructuring process of the city's economic growth will lead to a growth path driven by high-end industries and innovation, which is also "green" growth.
"We need to keep economic growth at a moderate pace. Otherwise, employment and residents' incomes will be jeopardized," Wang said.
The municipal government outlined an 8 percent full-year GDP growth target and a 7.5 percent real growth target for the income of urban and rural residents, Wang added.
"Judging from the economic development in the first half, the full-year targets are achievable if we keep working hard," Wang said.
He added that the global economy is going through a deep restructuring process with the United States and the European Union seeing a weak recovery and emerging economies facing risks of an economic slowdown.
Meanwhile, economic growth in Beijing, as in the country, is being confronted with great pressure due to unsteady growth, and 11 out of the 20 economic indicators in the city missed the annual targets in the first half, according to Wang.
"Domestic demand lacks a strong driving force while growth slowed in key industries such as manufacturing, financial services and technological services," Wang said.
Guo Jinlong, Party secretary of Beijing, said that despite achievements in the first half, "we have to be aware of the challenges, which mainly come from the eased growth in investment and consumption. In the second half, downturn pressure for economic growth will be greater than in the first half in view of the city's service-driven economic structure".
