China’s Economy Accelerates With Help Of Stimulus

From AP:

China has bought a rebound in economic growth with a flood of government spending and bank loans, averting a surge in politically dangerous unemployment and fueling hopes that it might help lead a world recovery.

The government’s announcement Thursday that second-quarter growth accelerated by 7.9 percent from a year earlier boosted global financial markets, though Beijing cautioned that a full-fledged recovery is not firmly established.

The economy grew by 6.1 percent in the first quarter, according to the National Bureau of Statistics, and analysts said full-year growth should easily reach the government’s 8 percent target.

The increase highlighted the economy’s dependence on Beijing’s $586 billion (4 trillion yuan) stimulus effort. It was launched after demand for Chinese exports collapsed, wiping out tens of millions of factory jobs and raising the specter of unrest.

July 17, 2009 2:22 AM
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Categories: Economy