Announcement

Collapse
No announcement yet.

China announces $ 586 Billion stimulus package

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • China announces $ 586 Billion stimulus package

    China has announced a $ 586 Billion stimulus package which will target a "wide array of national infrastructure and social welfare projects, including constructing new railways, subways, airports and rebuilding communities devastated by an earthquake in southwest China in May." as per this article ... link

    In the face of the current economic crisis, looks like the Chinese govt is trying to stimulate economic growth at home and trying to move away from an export driven economy ....

    To me it seems the right step to take from a Chinese point of view ... they do have huge forex reserves (~ $ 1.9 Trillion) ...

    Wonder if the Indian Govt will also try something like this ... and more importantly do we have the resources ??

  • #2
    4 trillion CNY(about 600 billion usd,but it is CNY,not us$) invested by government before 2010. This policy stimulated worldwide stock markets soar this turn.

    How much CNY can the world get from the policy?

    Its time to solve some 30 years' arrears , such as agricultural water conservancy projects...

    Investing directly is more effective than lowering the prime rates only. But it tests the wallet of a nation.
    Last edited by Tomluter; 11 Nov 08,, 03:42.

    Comment


    • #3
      China's stimulus plan expected to keep GDP growth above 7%

      China's stimulus plan expected to keep GDP growth above 7%

      SINGAPORE - China's multi-trillion yuan plan to boost its economy will keep growth above seven percent but its global impact will be limited, the Asia chief of US bank Morgan Stanley warned on Thursday.

      Stephen Roach said without the four trillion yuan ($586 billion) stimulus package, China's gross domestic product growth could fall to six percent next year due to lower demand for Chinese exports in major economies.

      China's GDP, which grew close to 12 percent last year, slowed to 9 percent in the third quarter this year, according to government figures, as shipments to the United States fell amid the world financial crisis.

      The recession in Europe and Japan, which collectively account for 30 percent of Chinese exports, will further hurt shipments, Roach told reporters on the sidelines of a Morgan Stanley Asia conference.

      With intra-Asian demand also easing, Roach said the stimulus package announced by Beijing on Sunday will prevent the growth rate from going to six percent, but will not leave it much above seven percent.

      Chinese state press reported on Monday that the Chinese economy is expected to grow between eight and nine percent next year, according to central bank governor Zhou Xiaochuan.

      China has said the stimulus plan would increase spending on infrastructure and a range of other sectors.

      Roach said China's economy growing at more than seven percent will help Asia to hold GDP growth at five percent, and allow the region to emerge from the financial crisis better than other areas.

      However, Roach said China "is not in a position to save the world," because its economy is relatively small and the level of per capita income is too low.

      "It has a growing impact on the world economy but China is still principally an outward-looking, export-led economy with a very low share of internal demand," he said.

      Morgan Stanley's economist for China, Qing Wang, told AFP on Wednesday that the country accounts for only 10 percent of the global economy.

      "I think the role of the package is to prevent the Chinese economy from a hard-landing," Qing said.
      sigpic

      Comment


      • #4
        News said, next year(09) only the total money that will be put into the development of railroads, will exceed the amount investion during last 30 years. (At present,total kilometres of China railway is only 1/3 as US.)

        China govt think, Big investion in railroads and other huge projects will recover some under-capitalization's places resulted in last 30years when the economy goes too hurriedly in. Get ready and lay the foundation for the next period of high growth.
        Last edited by Tomluter; 13 Nov 08,, 14:40.

        Comment

        Working...
        X