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Posted on Jan 27, 08:41PM | IANS
Inflation and fluctuations in the world's economy are the major challenges facing China's economy this new year, a top Chinese official has said.
"China's agricultural production base is still vulnerable, while inflation should cause serious concern," Zhang Ping, chief of the National Development and Reform Commission, the country's top economic planning authority, was quoted as saying by China Daily.
China's economy in the fourth quarter rose 7.9 percent compared to the same period a year ago. The rise has eased fears that China is in the midst of a downward trend.
Economists, however, doubt whether this momentum can continue as no major stimulus package is expected to roll out this year.
Zhang warned that uncertainties in the international economy was another threat, citing last year's inaccurate forecast of foreign trade growth.
"At the beginning of last year, we made an inaccurate forecast. The turbulence in the world economy turned out to be much more severe than we had thought," he said.
Falling demand in other nations dragged down China's export and import volume to 6.2 percent in 2012, well below the government target of 10 percent.