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Vice-Premier Li Keqiang talks with staff members at Jiangsu Sujing Purification Group during an inspection tour to Jiangsu province on Tuesday. Li called for a boost in domestic consumption through projects such as affordable housing and reform of medical services. [Photo/]?By Wang Zhenghua in Shanghai ( China Daily)BEIJING, May 23 (net) -- Vice-Premier Li Keqiang called for the expansion of domestic market demand through projects such as affordable housing and medical system reform, amid signs of the economy cooling further.During an inspection tour in East China's Jiangsu province, the vice-premier said that the transformation and upgrading of economic structures is an effective approach to expand domestic demand and ensure steady growth."While economic growth is generally on track, the international environment is complex and there are still many uncertainties and unsteady factors about the world??s economy," Li said in comments reported by China Central Television."We should properly handle the relationship between keeping a steady and rapid growth, adjusting economic structure and managing inflation expectations, and adhere to the proactive fiscal policy and prudent monetary policy," he added."The biggest potential (of our economy) lies in the domestic demand," he said, adding that domestic demand should be expanded while further exploring international markets.He stressed projects for affordable housing and healthcare reforms to stimulate demand and improve people's livelihoods.In 2011, around 10 million affordable homes were under construction around China, and about 4.32 million were completed, according to statistics from the Ministry of Housing and Urban-Rural Development. The number of projects under construction is expected to reach a new high in the years to come.Li visited several local enterprises, villages and farmland during his visit and exchanged views with company representatives, villagers and farmers.Li??s comments came as a series of lower-than-expected economic indicators showed that the economy is facing further downside risks.Chinese growth is likely to slow to 8.2 percent this year, its weakest in more than a decade, before government support helps it rebound to 9.3 percent in 2013, the Organization for Economic Co-operation and Development said on Tuesday.The OECD cut its growth forecast for the world??s second-largest economy from the 8.5 percent predicted last November. That is still higher than a government target of 7.5 percent.Data for April, including factory output and fixed-asset investment, suggests growth has weakened from the first quarter, when it hit a three-year low of 8.1 percent.The OECD expects the central bank to further ease policy and boost bank credit for first-time home buyers and sound property developers, which could help stabilize the property market.The People??s Bank of China has cut the amount of cash banks must hold as reserves three times since November to crank up lending. Analysts expect further cuts in reserve requirements and more fiscal measures to support the economy.(Source: China Daily)
by N. WithitwinyuchonBANGKOK, May 11 () -- Although an earlier report from a Thailand's state agency indicated that the government-implemented minimum wage rise contributed to increasing food production costs, a UNESCAP officer viewed that rising food price is not a problem as long as income is raised as well."Rising price of foods is a problem if the income is not rising. So, if the income is also rising, then you should be okay," Dr. Aynul Hasan, officer-in-charge, Macroeconomic Policy and Development Division of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), told  in a recent interview.According to the Thai National Food Institute's report, the scheme of minimum wage rise which has been effective since April 1 has contributed to an increase of 5-20 percent in food production cost.Besides, food prices in the country are also expected to rise by about 5 percent this year due to several negative factors -- higher fuel prices, the government's scheme to increase incomes of farmers and workers, and uncertainty over further natural disasters.The ongoing spike in food prices in Thailand has widely caused people's concern as most of the people could feel the effect. Based on the Commerce Ministry's statistics issued in early May, the price of ready-to-eat meals for household consumption went up by 8.1 percent in April while processed foods as well as vegetables and fruits by 6.2 percent.Wage hike, however, is a double-edged sword, resulting in an increase in food production cost on the one hand, while boosting the workers' productivity on the other hand.Dr. Hasan said that a win-win situation in which both workers and business owners are benefited would be created only if wage rise could be transferred into real productivity."Increasing the minimum wage, if commensurate with the productivity of the workers, then yes," he said when asked about the government's controversial wage scheme.At the Economic and Social Survey of Asia and the Pacific 2012 held in Bangkok on Thursday, Dr. Noeleen Heyzer, United Nations under-secretary-general and executive secretary of the UNESCAP, warned that the increasing food prices witnessed in Thailand and other countries in the Asia-Pacific region will largely affect the most vulnerable people and lead to severe and long-lasting social problems.She suggested that, in the short run, countries facing food price problems should reinforce social protection and provide better access to foods for marginalized groups while, in the long run, the agricultural productivity must be improved."In the short term, countries can protect the poor from the effect of rising price by strengthening social protection and by providing access to foods for the lower income groups," said Dr. Heyzer."In the long run, however, the best way to reduce food prices is to increase the agricultural productivity and the second green revolution based on the sustainable agriculture will be critical in managing regional food prices and also help rebalance the economy and make growth more inclusive," she added.
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