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Year of perseverance

(China Daily)
Updated: 2009-01-05 07:31

The great uncertainties that the world economy is facing will likely make this year a very difficult one for almost all countries. But a poor start does not guarantee pessimism for the Year of the Ox.

The ox is associated in this country with the character of high resolution. So the Chinese people are justified to have every confidence in their abilities to overcome all the difficulties ahead.

Though things can turn even more ugly before the economic slowdown is arrested later this year, Chinese consumers and companies have no reason to panic. Instead, only self-confidence and perseverance can help the Chinese economy ride out the global financial crisis.

Last year was surely a big year for China not only because of the grand Olympic Games Beijing hosted but also for all the sad and memorable events the country witnessed through the year.

This year will be of no less historical significance as the country celebrates the 60th anniversary of the founding of the People's Republic of China in October.

However, while the past year started with growing concerns that the Chinese economy might be overheating, this year begins with deep worries about a sharper-than-expected economic slowdown.

The about-face that the Chinese government has done on its macro-economic policies bears full testimony to both the rapid change of world economic conditions and its immense impact on Chinese businesses.

On the one hand, the deterioration and spread of global financial crisis later last year had plagued major developed economies and will drag the world economy into a year of higher unemployment, lower growth and plenty of uncertainties.

On the other hand, the increasingly dire consequences of shrinking overseas demand that Chinese exporters suffer have driven home a sense of urgency as well as a consensus that the global crisis affects all and none will be left unscathed.

The Chinese government's response to the crisis has so far been prompt and proper. Deep interest rate cuts and massive fiscal stimuli will begin to take effect in boosting economic growth this year.

It is hard to predict exactly when the global economy will end its downturn and restore growth given the unpleasant economic figures that all major economies are set to report in the following months.

Nonetheless, as Chinese policymakers are resolved to make domestic consumption a real leading growth engine, we are confident that the country will find a new model to sustain its long-term growth.

(China Daily 01/05/2009 page4)