Big post-Olympics China growth slowdown unlikely: report
BEIJING (AFP) — China's economic growth will not fall drastically after the Olympics although it faces problems due to the looming global slowdown, state media reported, quoting a senior economist.
Investment in sports venues and other infrastructure accounted for three percent of total investment in fixed assets, Xinhua news agency said, citing Fan Gang, a member of the central bank monetary policy committee.
Total investment in preparations for the Games in August is estimated at about 40 billion dollars -- a fraction of Chinese gross domestic product which topped 3.6 trillion dollars in 2007.
"China is a big country. Beijing is small," Fan said, according to Xinhua late Tuesday.
"Even if Beijing's investment in infrastructure drops sharply after the Games, it would not have a significant impact on the whole economy."
After the Games, the Chinese economy will keep growing at its own pace and according to trends in the world economy, according to the economist.
But new challenges will emerge as imbalances in China's economic structure remain and a slowdown in developed economies like the United States, Japan and Europe will cut demand for Chinese exports, Fan said.
