Global slowdown may impact China's growth rate

Tuesday, 28 October 2008, 00:41 IST
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Beijing: Narrowing overseas demand in the wake of global economic slowdown could have a negative impact on the growth prospects of exports-dependent China, country's top banker said Sunday. "Our economy is highly reliant on overseas demand. Slacking exports resulted from the global economic slowdown would have a negative impact on the economy," governor of the country's central bank Zhou Xiaochuan told Chinese parliament, the National People's Congress (NPC). He said the country needed to be cautious about adjusting policies because prices would possibly fluctuate frequently in the future. The central bank would strengthen the supervision system and have emergency measures in place to deal with possible negative impact on the country's banking system. It would also work to ensure sufficient liquidity in the domestic market. He also said the central bank would keep a close look over the real estate sector and improve financial services in this market. The central bank would let the market "play a bigger role" in deciding interest rates and keep the exchange rates stable, he said, adding it would step up supervision over cross-border capital flows to prevent damage caused by massive flow of short-term speculative capital. The fifth session of the Standing Committee of the 11th National People's Congress (NPC) opened its second plenary meeting Sunday morning. Wu Bangguo, chairman of the Standing Committee of the NPC, attended the meeting.
Source: IANS
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