Chinas economic growth target within reach

China said its 8% growth target for this year is within reach even as the worst financial crisis since the Great Depression hammers economies worldwide. Liu Tienan, vice chairman of the National Development and Reform Commission, restated the goal at a briefing in Beijing recently and said China has “the conditions” and “the confidence” to meet it.

Falling export demand has slowed China?s growth to the weakest pace in seven years, cost the jobs of 20 million migrant workers and prompted a 4 trillion yuan ($585 billion) stimulus plan. “Keeping growth at or near eight percent this year shouldn?t be that difficult with all the investment that is planned,” said Ken Peng, an economist with Citigroup Inc. in Shanghai. “If the trade environment remains horrible next year or even after, China will face more difficulties.”

The stimulus plan, running through 2010, may be doubled, creating an investment boom, as the central and provincial governments start extra spending programs. The IMF forecasts China?s economy will expand 6.7% in 2009 from a year earlier, the least since 1990. While China is the only one of the world?s five biggest economies still growing, the pace has slowed from 13% in 2007 and 9% last year.

The economy?s expansion was 6.8% in the fourth quarter of last year as trade collapsed and the property market sagged. Overseas shipments fell 17.5% in January from a year earlier and imports declined 43.1%. China is relying on the spending package through 2010, spanning public housing, railways, highways, airports, and power grids, to spur growth. The nation is committing about 1.2 trillion yuan of central-government funds to the plan. A 10-industry support package covers road vehicles, steel, shipbuilding, textiles, light industry, nonferrous metals, logistics, petrochemicals, electronics, and machinery manufacturing.