Anchor:
Though the devastating earthquake in southwest China has caused heavy human and property losses, economists say its negative impact on China's economy is limited and China's economy will maintain its high growth this year.

Our reporter Lin Lin has the details.

Reporter:
Geologically, Sichuan province is situated in southwestern China, which is underdeveloped and not at the center of the country's manufacturing industry. In addition, most of the seriously affected areas of the earthquake are sparsely populated mountainous regions.

Taking these facts into consideration, Yi Xianrong, an economist from the Chinese Academy of Social Sciences, points out that the devastation will not have a big influence on the Chinese economy.

"Although the earthquake has a fatal impact on the local economy, it will only influence the national economy slightly. In fact, the huge direct economical losses only make up a tiny part of the overall GDP."

Talking about China's inflation pressure, Yi Xianrong says the disaster will have a short-term and regional impact.

"When it comes to the price level, the earthquake might have a big influence on people's consumption psychology. However, the disaster does not have a close connection with Consumer Price Index. It will not have a concrete impact."

Turning to the agricultural product market, Sichuan province is a major basis for grain output. Its annual output of grain and production of edible oil makes up six and eight percent in the national output, respectively.

However, as most of the agricultural products from the major quake-affected areas are for self consumption, the destruction of arable land may not affect nationwide supply. In addition, as China has adequate storage of grain and oil, a sufficient supply and a stable price in the agricultural market can be maintained.

Wei Chao'an is the vice minister of agriculture.

"Agriculture production in the quake-hit areas has suffered great losses. However, national agricultural production this year is quite good. The disaster will not have a fundamental impact in this sector. Supplies of staples like grain and pork are sufficient. The overall prices of agricultural products will stay stable. We are fully confident of that."

Currently, the Chinese government has shifted its focus to post-quake reconstruction and restoration of productivity. The central government has earmarked 70 billion yuan, or about 10 billion US dollars, to the quake areas for its reconstruction.

With financial support from the central government, infrastructure like transportation and housing in quake-ravaged regions will be restored in the short run.

Here is Yi Xianrong again, the economist from the top think tank.

"As large investments will be allocated for post-disaster reconstruction, the local economy will enjoy a rapid growth. Related industries will also be boosted by the rebuilding efforts. It is predicted that reconstruction in quake areas will contribute two to three percentage of growth to the national economy."

The expert notes Sichuan has rich reserves of some natural resources like vanadium and aluminum, but the earthquake ravaged infrastructure like production lines, power supply and transport, so in the short run prices of these materials will be on the rise. But he also predicts with infrastructure resumes, price hikes will see a rebound.

Lin Lin CRI news.