I would like to respond to references to the World Bank in your article 'Shadow economy casts pall over Zhu' (Sunday Morning Post, September 6). You stated that 'World Bank internal studies are estimating growth at four to five per cent'.
First, I am not sure what internal studies you may be referencing. Second, the World Bank has developed a range of scenarios for the Chinese economy in the course of its work. In some of these scenarios, the effects of the Asian crisis could lower growth several percentage points if uncompensated. However, the Government has developed a stimulus package - which we fully support - aimed at counteracting some of the contractionary impact of recent external developments. This stimulus is expected to have a positive impact on the real economy. Hence, the Government could reach its growth targets.
YUKON HUANG Director, China Programme and Chief of Mission
