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China stimulus pays off for economy

China stimulus pays off for economy article image
The Chinese government's financial stimulus measures have boosted industrial production and sales while lowering consumer prices, according to new data released by China's National Bureau of Statistics. October figures showed a 16.1 percent increase in industrial production and a rise in retail sales compared with the same time last year. It was also up from September figures of a 15.5 percent rise. "Based on the October data, we have more reason to believe that the foundation for and confidence in achieving the full-year growth target have further strengthened," said Sheng Laiyun, spokesperson for the bureau, referring to China's aim for eight percent economic growth in 2009. Domestic demand has been a key driver for growth and is likely to continue, said Sheng: "The government policies, especially those to boost domestic demand, to a large extent improved residents' production and living conditions. I think the contribution of consumption to economic growth will continue to rise because we can expect a consumption boom before the new year and the Chinese new year." The World Bank raised its latest 2009 growth forecast for China to 8.4 percent its 2009 growth forecast, in line with similar predictions made by the International Monetary Fund and the Asian Development Bank.

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