By Long Haibo, General Office, Development Research Center of the State Council (DRC)

Report No 107, 2014 (Total No 4606)

Summary:

Central China's economy had steady growth from January to May, 2014, and the macro-economic situation was good in general, even though the development slowed down gradually with some indices falling sharply. This survey found that the region had some achievements in structural adjustments, but that there were potential risks and problems, such as difficulties in industrial production and operations, the real estate market, conflicts between revenues and expenditures, and insufficient force for growth. In looking at trends in the second half of the year and mid-to-long-term development, we find that the downward pressure on the economy is still there and that economic growth will be slow at the beginning and then become stable with good momentum and reach this year's goal. So, policies need to focus on stability and need to be dynamic, developing the diving force, and increasing controls. The government also needs to take regional differences into account and implement policies that maintain growth, make structural adjustments, carry out reforms and improve people's livelihood.