Why does think tank think China economy will grow in 2nd quarter?
Robust investment backed by stimulus spending will likely help China’s economy to expand 7 percent in the second quarter, showing the economy may be rebounding from the financial crisis, a government-affiliated think tank said in a report published Monday. That would be an improvement from the 6.1 percent growth it notched the first quarter, its slowest rate in at least a decade. Meanwhile, investment in fixed assets such as factories and construction is forecast to rise 27.6 percent in the second quarter from a year earlier, the Beijing-based think tank, the State Information Center, said in the report carried in the state-run newspaper China Securities Journal. That is slightly lower than the 28.8 percent growth seen a year earlier. Those projections and other recent numbers suggest that a 4 trillion yuan ($586 billion) government spending package aimed at catalyzing investment and spending is beginning to take hold. Sources:
Robust investment backed by stimulus spending will likely help China’s economy to expand 7 percent in the second quarter, showing the economy may be rebounding from the financial crisis, a government-affiliated think tank said in a report published Monday. That would be an improvement from the 6.1 percent growth it notched the first quarter, its slowest rate in at least a decade. Meanwhile, investment in fixed assets such as factories and construction is forecast to rise 27.6 percent in the second quarter from a year earlier, the Beijing-based think tank, the State Information Center, said in the report carried in the state-run newspaper China Securities Journal. That is slightly lower than the 28.8 percent growth seen a year earlier. Those projections and other recent numbers suggest that a 4 trillion yuan ($586 billion) government spending package aimed at catalyzing investment and spending is beginning to take hold. A business group says China’s manufacturing has grown for a second
