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Tibetan officials optimistic about economy in 2009

(Xinhua)
Updated: 2009-02-24 15:02

LHASA - Tibetan economic officials are generally optimistic about regional economic development this year, even though last year's Lhasa riot and the global economic downturn have caused an immediate or indirect impact on the far western autonomous region.

The officials attributed their optimism to robust central government investment in the region, which would ensure relatively faster economic growth than in other parts of China.

The National Bureau of Statistics Tibetan Branch Deputy Director Wu Jianhua told Xinhua the impact of the global downturn on the region's real economy was "limited" as Tibet's economy was mainly driven by central investment.

Wu said 2009 would be a "pivotal year" for Tibet to complete its part of the country's 11th five-year plan. From 2006 to 2010, the Chinese government planned 180 key projects valued at nearly 80 billion yuan (US$11.76 billion) to develop the region's infrastructure.

These projects included the Qinghai-Tibet Railway extension line, the world's highest airport in Ngari, the region's fourth civilian airport, and drinking water, electricity and communications projects. More than 93 percent of the funding will come from the central budget.

"Nearly 30 billion yuan has been spent, and another 20 billion is to be spent this year," Wu said.

Xu Jianchang, deputy director of the Tibet Regional Development and Reform Commission, said local consumption, mainly driven by tourism, was "severely hurt" by the March 14 riot.

"The economy is still recovering from the impact of the riot," Xu said, adding that this year's economic performance was likely to be better than in 2008.

The local government set a goal of 10-plus percent economic growth this year. Other double-digit growth targets include per capita net income for farmers and herders, budget revenue, fixed-asset investment and retail sales.

The region's economic growth target was higher than that of other parts of China. Both Beijing and Shanghai, for instance, last month announced 2009 growth targets of 9 percent.

Xu said per capita net income for farmers and herders had grown by double-digit annual rates since 2002, and it reached 3,170 yuan last year.

Since the central government convened the third Tibet Work Symposium in 1994 to boost investment in Tibet, the annual growth of the region's GDP averaged 13 percent, 3.2 percentage points higher than the national average.

Tibet's GDP grew 10.1 percent last year to nearly 39.6 billion yuan.

Qiangba Puncog, chairman of the regional government, told reporters last month that without the riots, GDP could have reached 40 billion yuan.

Unprecedented growth

"It's unprecedented in Tibet history that the economy achieved such rapid growth," Wu said.

He said since Tibet started democratic reform in 1959, "the central budget has gradually increased the amount of transfer payments to the region" and took nothing away.

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