Market-oriented means will also be used to squeeze credit
Macroeconomic controls, last year's catchphrase for the mainland economy, will continue to be important levers this year for a central government concerned that output is still growing rapidly.
Officials from the National Development and Reform Commission said economic performance would be determined by the prices of consumer goods and raw materials, and by interest and exchange rates.
The commission estimated that the consumer price index grew by 4 per cent last year, the highest growth rate since 1997. Noting early signs of upward pressure on prices this year, it stressed the need to persevere with macroeconomic controls.
Zhou Keyu , chief economist and research department manager at one of the mainland's leading brokerage firms, Guotai Junan Securities, agreed. 'The growth rate of GDP will be slowing somewhat as the government continues its macro-control policy,' Dr Zhou said yesterday. 'The economy, particularly in the area of investment, needs further cooling.'
The latest capital frenzy began in the latter part of 2003. Fixed-asset investment grew 47 per cent that year and accelerated to a year-on-year pace of 53 per cent in the first two months of last year.
That breakneck growth prompted the government to take tough action and resort to macroeconomic controls.
