ECONOMY-Economic Overview-Senior officials discuss 2009 economic goals---Powered By SiteEngine

China's economic policy-makers are in the midst of their annual Central Economic Work Conference in Beijing. The 3-day meeting started on Monday and is expected to come up with more measures to boost the economy.

The three-day closed-door conference will set China's 2009 economic goals and its agenda. But in contrast to previous years when a overheated economy was the concern, this time maintaining fast and stable growth is considered the main goal.

Many experts believe keeping the GDP growth rate above 8 percent is crucial.

Liu Yuanchun, Assoc. Dean of School of Economics of Renmin University said "Economic growth is a primary target in China. Many of the country's problems can only be solved when its economy grows at a robust pace. Take employment for example, 8 percent growth is believed to be a figure which can barely digest the 10 million new job seekers each year. A growth rate lower than that could lead to a substantial drop in employment."

To avoid that scenario, the central government has announced a series of measures. The most dramatic one is a massive four-trillion-yuan stimulus package that will be spent over the next two years.

But professor Liu says that might not be enough to ensure GDP growth will reach its target rate.

Liu Yuanchun said "The 4-trillion-yuan stimulus plan mainly focuses on investment programs, such as infrastructure construction and affordable home building. The government should announce further policy measures that can boost employment and consumption directly. That is key for maintaining consumer confidence and social stability in the longer term. "

According to Professor Liu these measures include helping college graduates and laid-off migrant workers find jobs. It also means accelerating the establishment of a social benefits safety net. There is also still room for policy-makers to come up with more interest rate cuts to boost economic growth.

Statistics show the GDP growth rate in October slowed sharply to 7 percent. Other economic data released in November, including a drop in car sales and electricity production, appears to indicate a further slowdown of the economy. This has made the prospects for next year's economy more uncertain and challenging.

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