Local GDP growth to slow in 2014

More than 20 provincial-level governments are holding or will hold people's congress and people's political consultative conference annual sessions this week, the China Trade News reported on Thursday.

The annual major event offers an opportunity for local governments to implement the rules and regulations of deepening reform set down by the central government, said the newspaper.

Among the provinces holding annual sessions, some have reduced their GDP growth forecasts for 2014 in their economic and social development plans, based on the actual growth rate for 2013.

The Government Work Report of Gansu Province shows that the total output value of the province hit an estimated 630 billion yuan (about US$104 billion) in 2013, an increase of 12.1 percent, and the figure is expected to increase by about 11 percent in 2014, down 1.1 percentage points.

For the Tibet Autonomous Region, the total output value was estimated at 80.2 billion yuan (about US$13.24 billion), an increase of 12.5 percent, while the 2014 forecast is for 12 percent.

Fujian and Hebei provinces have also reduced their expected GDP growth rate in 2014 by 0.5 percentage points to 10.5 percent and 8 percent respectively.

Xu Fengxian, a researcher and economist at the Chinese Academy of Social Sciences, said China is currently optimizing and adjusting its industrial structure, so some areas have adjusted their growth expectations. Most of these areas are located in the central and western parts of the country. Growth in eastern China will increase at a moderate level, he predicted.

Xu said that industries with comparatively large international markets would continue to develop and adjust, while the traditional industries with over capacity may be forced to cut back and find ways to add value in their processing.

He also suggested a greater focus on the development of scientific and technological innovation, and the new energy and biopharmaceutical industries.