China is about to infuse a multi-billion dollar financial package in order to maintain growth and insulate its economy against global slowdown. Among the top priorities are building of new roads, airports and hydropower stations, subsidizing purchases (on energy saving products) and reviving cash-for-clunkers programs (to boost up sales in the automobile sector). The fresh boost of investment is estimated to be around $150 billion or more.
China's economic stimulus program has barely received any formal acknowledgement; although, Chinese premier has agreed “new emphasis on growth.” The Prime Minister of China has also stressed on the importance to develop strategic emerging sectors, particularly when the economy is feeling downward pressure.
It is reported that China has sanctioned 868 new projects in the first four months of this year, followed by another 100 projects in the month of May alone. This is a remarkable shift from recession hit economies as both the investment and the consumption incentives are totally backed by the state. As of now, Chinese planners are treading cautiously, watching the impact of economic stimulus on Chinese economy.
China's economic stimulus program has barely received any formal acknowledgement; although, Chinese premier has agreed “new emphasis on growth.” The Prime Minister of China has also stressed on the importance to develop strategic emerging sectors, particularly when the economy is feeling downward pressure.
It is reported that China has sanctioned 868 new projects in the first four months of this year, followed by another 100 projects in the month of May alone. This is a remarkable shift from recession hit economies as both the investment and the consumption incentives are totally backed by the state. As of now, Chinese planners are treading cautiously, watching the impact of economic stimulus on Chinese economy.
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