💾 Archived View for gmi.noulin.net › mobileNews › 1538.gmi captured on 2024-03-21 at 19:20:46. Gemini links have been rewritten to link to archived content

View Raw

More Information

⬅️ Previous capture (2023-01-29)

➡️ Next capture (2024-05-10)

-=-=-=-=-=-=-

China economic growth accelerates

2009-10-22 08:44:46

China has said it is on track to hit its growth target of 8% this year, after

the economy grew 8.9% from a year ago in the third quarter.

The figure is up from the 7.9% rate seen in the previous quarter and is the

country's fastest GDP growth since the third quarter of last year.

Separate reports show that industrial production and retail sales also

accelerated in September.

The economy grew by 7.7% in the nine months to September.

Retail sales growth was 15.1% in the first three quarters of the year, the

National Statistics Bureau said.

China's car market has become the world's largest, with sales up 34% to 9.66

million vehicles in the first nine months of the year.

Government investment

At the end of 2008 the Chinese government announced a 4 trillion yuan ($586bn;

354bn) stimulus plan involving increased spending on infrastructure, such as

rail and roads, to boost the domestic economy as exports slumped.

Latest figures show that investment, accounting for nearly 88% of GDP growth

earlier this year, is playing a vital role in China's growth.

Investment in factories, construction and other fixed assets rose by one-third

in the first nine months of the year to a record 15.5tn yuan.

But factory owners say that in many cases, while the volume of goods they are

producing has risen, the prices customers are prepared to pay for them are

lower than before the financial crisis.

Unemployment is still high in many areas, and some factory workers are reported

to be working shorter hours and earning less.

The next challenge for policy makers is to begin to withdraw elements of the

stimulus plan, and to reduce the huge outflows of credit the country's state

owned banks have issued, without damaging economic recovery.

As the stimulus is withdrawn, the hope is that demand from the private sector,

from consumer spending and eventually from renewed demand for China's exports,

will keep the country's growth rate stable.