CRI听力:Economist: Consumption Key for Chinese Economy in 2012

In contrast to what the plan was last year, with inflation the main focus, economic indicators are now leading many policy-advisers to suggest the first quarter of this year should be focused on stimulating growth.

CPI here in China was hitting record highs this past year.

The Consumer Price Index peaked in July at 6.5-percent.

However, thanks to tighter fiscal and monetary policies, the inflation rate is now hovering at a much more manageable 4-percent, with November's CPI coming in at 4.2.

As such, a number of leading economists are now suggesting it's time to re-focus on maintain growth here in China.

Yuan Gangming is a researcher at Tsinghua University.

"The most important task for economic policy-makers in 2012 is to maintain the economic growth momentum. The Chinese economy should be prepared to fend off the negative impact of the sluggish world economy and explore new growth engines."

Through the second half of this past year, a number of tax incentives have been brought in to try to help small and medium businesses survive the tightened lending brought on by government controls to try to keep inflation in check.

At the same time, Yuan Gangming says measures to raise the income of traditionally low-income stratas of society are also expected help to stimulate consumption and boost growth.

"To stimulate domestic demand, the percentage of residents' income in the GDP should be further raised. The economy should shift from excessive reliance on the property market to expanding domestic consumption for development."

However, Yuan cautions that China's economy has been heavily-reliant on key sectors, such as the property market, over the past few years.

But with the property market here in China now slowing down, Yuan Gangming is suggesting that government spending on social programs, such as medicare and low-income housing would go a long way to diversifying the economy and keeping it healthy.

China's top leadership has recently suggested that a slew of measures to ensure -- quote -- "stable and relatively fast" economic growth this year are going to be brought in.

For CRI, I'm Su Yi.