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Structural Inconsistency is the Biggest Challenge of This YearSubscribeEmail a Friend

Structural Inconsistency is the Biggest Challenge of This Year

2010-6-25 10:02:28

 
Structural Inconsistency is the Biggest Challenge of This Year
Experts say, China economy will continously keep its swift growth on total amount, and they also predict that this year’s GDP growth rate will surpass 9%. However, as the experts said, the biggest challenge of this year will be the structural inconsistency, and this year may become the most complicated for macro-economic regulation.
     
At present, there are several outstanding structural inconsistency that influencing China economic growth, as follows:
     
Fisrst of all, it is the structural inconsistency between overseas market demand and domestic demand that affect China economic growth. Since the 90s in last century, the export growth rate of every year was over 20%, especially before the year of 2007, pushing China’s economic growth rate from 2% to 3%. However, due to the financial crisis, the shortcoming of over relying on overseas market demand has emerged, which leading to a gliding tendency for China economy and forcing China to open its domestic market in order to achieving economic balance.
       
Meanwhile, be alert with the structural inconsistency between investment and consumption while developing domestic market demands. Nowadays, the growth rate of national income is obviously slower than financial and GDP growth rate, and the people’s income disparity constantly expand, constraining the consumer demand in national economic structure.
      
Furthermore, the level of urbanization and the process of upgrading of industrial structure fall behind industrialization level. Currently, the level of urbanization of China lag behind the economic development, influencing the expanding of domestic demand and widening the gap of town and county.

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