Economic review

Potential huge despite infrastructure investment slowdown: official

2018-05-16 11:28:00 (Beijing Time)


(ECNS) - China's infrastructure investment has continued its slowdown, but there's good reason for it and potential is still huge, said Liu Aihua, spokeswoman for the National Bureau of Statistics, on Tuesday.

Data show that infrastructure investment, a powerful economic driver last year, grew 12.4 percent in the first four months of the year, dropping from 13 percent earlier in the year.

Liu said the double-digit growth in infrastructure spending "should not be seen as low."

She also said infrastructure investment growth had weakened from its previous high due to governmental measures to regulate public-private partnership (PPP) projects and the financing activities of local governments amid efforts to defuse financial risks.

In the long run, those measures will promote the healthy development of PPP and ensure the stable and sustainable growth of infrastructure investment despite the short-term impacts, Liu said.

China's fixed-asset investment (FAI) rose 7 percent in the four months, 0.5 percentage points lower than the growth for January-March.

Liu said China's economy is in a stage of transformation from fast growth to focus on growth quality. Although fixed-asset investment growth eased, the structure of investment continued to optimize, with more support for economic transformation and improving supplies.

China, as the largest developing country in the world, has great potential and considerable room for infrastructure investment, Liu said.