Tags: China | stimulus | Politburo

China Aims to Keep Stoking Growth

By    |   Tuesday, 01 Dec 2009 12:22 PM

China's top leadership said it would keep policies to support growth in place through 2010, despite concerns about the effects of more powerful stimulus on the world's fastest-growing major economy, The Wall Street Journal reports.

A statement from the Politburo, comprised of the Chinese Communist Party's 25 most powerful officials, also said it will "focus more on improving the quality and efficiency of economic growth," and promised more policies to support consumer spending and support investment by private-sector companies.

China's stimulus efforts this year have resulted in bank lending and capital expenditure growing by more than 30 percent.

In China, some economists are concerned that loose monetary policy could drive up prices of stocks and housing, and build up unneeded factories and saddle the economy with bad debts.

"There are still possibilities for a second wave of crisis," said Lin Songli, an economist with Guosen Securities in Beijing, told the Hang Zhou News. He believes that China must maintain the continuity and stability of its macro-economic development and exercise a pro-active fiscal policy.

However, China's economic growth has approached its pre-crisis level a year after the adoption of the four-trillion-yuan economic stimulus package.

China’s government figures show the country’s economy grew 8.9 percent year-on-year in the third quarter this year, up from 7.9 percent in the second quarter and 6.1 percent in the first quarter.

In the third quarter last year, it increased nine percent year-on-year.

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China's top leadership said it would keep policies to support growth in place through 2010, despite concerns about the effects of more powerful stimulus on the world's fastest-growing major economy, The Wall Street Journal reports.A statement from the Politburo, comprised...
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2009-22-01
Tuesday, 01 Dec 2009 12:22 PM
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