China’s GDP to grow by 7.5 pct annually

China’s GDP to grow by 7.5 pct annually

China’s gross domestic product (GDP) is expected to grow by about 7.5 percent annually in the next five years, said Ma Kai, Minister of the National Development and Reform Commission (NDRC), on Monday.

Ma told the World Industrial and Commercial Organizations Forum in Beijing that GDP would reach 3.2 trillion U.S. dollars under the current foreign exchange rate.

He said the macro-control policies had started to take effect this year, while the consumer price index (CPI) remained very low.

In the first nine months, GDP grew at 10.7 percent, down 0.2 of a percentage point from the first half, and CPI stood at 1.3 percent, down 0.7 of a percentage point from the previous year.

Ma said the government would further strengthen macro-control efforts by implementing more stringent financial and monetary policies and using administrative means.

“China will strive to make its economy to grow in a more healthy way by focusing on reining in the fast growing investment, loans and trade surplus.”

He also said the booming economy would create new jobs for 45 million urban people and migrant workers between 2006 and 2010.

The government would further strive to reduce the widening income gap. The per capita net income of urban people would rise to 13,390 yuan (1,699 U.S. dollars) in 2010 from 10,493 yuan (1,332 U.S. dollars) in 2005, while that of rural people would rise to 4,150 yuan (527 U.S. dollars) from 3,255 yuan (413 U.S. dollars).