Q1 of China's GDP shows decline and inflation rising

Beijing, Apr 3 (ANI): A senior Chinese government official has said the administration is focused on stable economic growth, even as the nation continues to face challenges. Zhang Xiaoqiang, Deputy Director of the National Development and Reform Commission, said that the GDP rate might have reduced down to 8.4percent which could affect the country's economic progress in this year.

The China Daily, quoted him, as saying, that the primary catalyst for inflation was the consumer's prince index which might increase to 3.5 percent year-on-year in the first quarter.

Speaking at a lunch session in Boao, Zhang said, "Stable growth has been set as the tone for 2012 by the government in the context of the uncertainties and challenges of the world economy."

A report relating on government work submitted by Premier Wen Jiabao last month has revealed that the country will track down its growth target in the year 2012 to an eight-year low of 7.5 percent and will hold the CPI target till about four percent.

Jiaboa, who was on three-day inspection trip to Guangxi Zhuang and Fujjan provinces, further said that inspite of the relapse of few major economic indicators, China's economic growth will not be hampered and confidence level must be continued in the country's economic activities as the government predicts the execution of its macro controls.

Zhang emphasized China will continue to develop its investment status and strengthen cooperation with other Asian countries.

Zeng Peng, Vice Chairman, Board of Directors Boao Forum Asia, said Asian countries need to come together to "play a positive role in global economic governance" and reflect Asia's common interests.

Montek Singh Ahluwalia, the deputy Chairman of India's Planning Commission, drew attention towards to global economic threats such as the eurozone debt crisis, currency risks and oil prices.(ANI)