Monday, 10 November 2008

China Announces 4 Trillion Yuan Economic Stimulus

China announced a 4 trillion yuan ($586 billion) stimulus plan to spur expansion in the world's fourth-largest economy, helping sustain global growth as the U.S., Europe and Japan teeter on the brink of recession.

The funds, equivalent to almost a fifth of China's $3.3 trillion gross domestic product last year, will be used by the end of 2010, the Beijing-based State Council said today on its Web site. China will adopt a ``pro-active fiscal policy'' and pursue a ``moderately loose'' monetary policy, it said.

``We have long-awaited this stimulus plan,'' said Ken Peng, an economist at Citigroup Inc. in Shanghai. ``The measures may stimulate domestic demand, but they won't prevent China's economy from slowing further as the global economy is certainly in a recession.''

China has the capital to help out its economy, while across the Pacific, the US has only debt in order to "pay" for any new projects ...

[Posted at the SpookyWeather blog, November 10th, 2008.]

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