China's monetary policy is 'prudently accommodative'

FROM a historical perspective, Asia is in a long process of awakening - and will continue to be the world's fastest-growing region. The four largest Asian economies, Japan, South Korea, China and India, sharing important elements of cultural heritage, are good examples.

India is speeding up with great potential. Japan is growing slowly, but in view of its shrinking population its performance is quite stable in per capita and quality terms. South Korea is playing an important role in Asia-Pacific economic integration. China is rebalancing and consolidating, and has become part of the driving force of the world economy.

Against that background, China has made progress in improving its economic structure. Services account for 51 per cent of GDP (gross domestic product), with consumption taking a rising share. Underlining better economic balance, the current account surplus dropped to 2.7 per cent of GDP last year from 10 per cent in 2007. Outstanding foreign currency-denominated debt has declined to around one quarter of official foreign reserves.