Beijing has forecast an end to the deflation that has plagued the economy for more than two years and promised sweeping measures to spur private investment.
Zeng Peiyan, Minister of the State Development Planning Commission, made the forecast in a review of the economy over the past year and of the prospects for 2000.
One of the most pressing problems is deflation, with retail prices negative for the past 27 months and production-material prices negative for the past 45 months, thanks to a surplus of almost all products.
'The margin of price deflation will fall this year,' he said. 'In some provinces, it has already reached zero and by the end of the year it will be zero [for the whole country]'.
GDP growth this year would be at least as high as last year, when it was 7.1 per cent, the lowest since 1990, he said.
Economists are more optimistic, forecasting the economy will grow between 7.5 per cent and 8 per cent.
