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Economist: Chinese economy to benefit from Olympiad
( 2001-07-16 16:59 ) (8 )

That Beijing has won the right to host the 2008 Olympic Games is of significance to China's economic development, said renowned economist Fan Gang.

It will increase confidence of both investors and consumers in China's economic prosperity in the years to come, as the huge demand to be brought by the sports event will fuel the economic growth, Fan was quoted as saying by "Economic Information Daily" Monday.

Construction of infrastructure facilities will undoubtedly speed up so that investment growth will be kept at a high level to enhance economic growth, he said.

The most important thing is that it will help modernize and internationalize the Chinese economy, he said.

Fan forecast that China's reforms in many aspects will be accelerated. He explained that motivated by the 2008 Olympic Games, China's already planned reforms will be able to be done in a more smooth way and better climate.

He cited Japan and the Republic of Korea as such examples. Both countries have witnessed positive economic spur after gaining the right to host the Olympic Games.

However, Fan pointed out that China should learn from lessons of other countries in order to make efficient and reasonable use of the limited resources and funds.

He also warned of possible inflation and high consumption though there are no such risks in real life yet.

Meanwhile, Fan held that as a developing country, China could not afford an international competition with high costs of labor and land.

He suggested decision-makers to closely watch the macroeconomic performance and take proper measures to avoid big problems.