Feeling the heat

Article Abstract:

China's trade deficit stood at $1.2 billion in the 1st qtr of 1993 compared to $91 million in the 1st qtr of 1992. The current deficit resulted from a 25% rise in imports and only a 7.4% rise in exports. The trade deficit, rising inflation and other factors reinforced the government's belief that the economy has overheated. Hence the government's cool-down economic policy, exemplified by its raising of interest rates in May 1993, will continue. However, efforts to keep gross domestic product under the 1992 13% growth rate will probably fail.

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Bottomless pockets: Peking heads for another big fiscal deficit

Article Abstract:

Chinese Finance Minister announced a huge budget for 1993 despite warnings from economists of a possible surge in inflation rate. Despite decreases in debt servicing and enterprise loss subsidies, incomefrom from state eneterprises is expected to drop 62%. The government manages todisguise its financial dilemmas by manipulating its account tables. All that remains is for it decide whether to place the burden on the citizens or on the nation's state-run banks.

Forecasts and trends, Economic policy, Expenditures, Public, Public expenditures, Li Peng

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Overripe fruits

Article Abstract:

The present accelerated growth rates in China is unlikely to last through 1993 with the national deficit also foreseen to balloon mainly due to increasing prices of raw materials and energy, diminishing enterprise cash surpluses and decreasing demand. Furthermore, money supply and inflation has shot up and the country still had a large surplus in spite of the improvement in industrial production and international trade.

Evaluation, Economic development

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