The quake might reduce Chinas economic growth by 0.1 per cent but the loss might be offset by huge costs of rebuilding which would push up the fixed asset investment growth by 1.1 per cent and help the economy grow 0.4 points faster, a report, published by the State Information Centre under the National Development and Reform Commission, said.
Nearly 69,200 people have died in the quake of magnitude 8 in Southwest China's Sichuan province, the most calamitous disaster to have struck China in the last three decades. It left millions homeless and devastated the infrastructure, leaving behind a mammoth task of relief and rehabilitation.
Most of the damage was not covered by insurance, with insurers having paid out only $19.88 million for property claims, state-run Xinhua news agency has quoted the China Insurance Regulatory Commission.
Citing preliminary statistics, the regulator said 16,500 life insurance policy holders were killed in the quake and another 2,474 injured. Also, 149,000 insured houses collapsed in the quake.
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The report said that in the aftermath of the temblor, the cost pressure would rise as supply would be reduced on one hand while the demand would go up on the other, at least in the short and medium term.
The Consumer Price Index, barometer of inflation, increased 7.7 per cent in May, dropping significantly since last year but higher than 4.8 per cent targeted by the government. The CPI in April had reached 8.5 per cent almost hovering near a 12-year monthly high of 8.7 per cent in February.