China's Industrial Growth Expects to Reach 15% to 16% in Fourth Quarter of 2009

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Researched by Industrial Info Resources (Sugar Land, Texas)--China's industrial economy has weathered a difficult period and is gradually improving. Industrial growth is expected to reach 15% to 16% in the fourth quarter of this year, said Li Yizhong, Minister of Industry and Information Technology, at the China Internet Conference in Beijing on November 2.

"The series of countermeasures and plans launched by the Chinese government in dealing with the financial crisis has achieved obvious results," said Li. "In view of the industry sector, the overall growth in production is accelerated, enterprise's profit is turning better, industrial investment has been kept on steady growth, and industrial power consumption and railway turnover have also kept rising monthly."

In the first three quarters of 2009, the growth of Chinese industrial enterprises with annual income of more than $730,000 reached 8.7%. Industrial growth is expected to reach 15% to 16% in the fourth quarter. Therefore, the yearly industrial growth will surpass 10% this year. The target of 8% of annual growth in gross domestic product could be reached.

Li pointed out that the foundation for the rebound of the industrial economy remained weak. Evidence shows that the Chinese economy has bottomed out. However, the global demand on consumption remains fragile, and employment remains weak. Potential financial risks and trade protectionism might bring a new shock to the world economy.

Li also pointed out that although China's gross domestic product increased 7.1% in the first half of the year, 87.6% of that growth was from investment. "Presently, China's industry is facing a new adjustment and the question of new growth. China has to alter its rough development mode; otherwise, it will run into a more difficult situation, even as the rebound comes earlier than in Western countries," said Li.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.