Country economic review - People's Republic of China

Abstract

The People’s Republic of China (PRC) successfully weathered the Asian crisis. Three consecutive years of expansionary fiscal policy and interest rate reductions enabled the country to contain the adverse effects of the Asian crisis, maintain a stable exchange rate, and achieve robust growth. Strong economic growth continued in the first three quarters of 2000 when gross domestic product (GDP) grew by 8.2 percent. For the whole of 2000, GDP growth will be about 8 percent. Coupled with targeted antipoverty programs of the Government, the robust growth enabled the PRC to continue its commendable progress in reducing poverty. However, PRC’s fight against poverty is far from over as there are still about 230 million people (18.5 percent of the population) living below the $1-a-day consumption norm, and about 670 million (53.7 percent of the population) living below the $2-a-day consumption norm. The incidence of poverty is highest in the interior provinces, especially in the western region of the country. Urban unemployment and poverty are now emerging as new challenges.