China’s Wen Sees Some Sign of Recovery After Stimulus
China’s economy has shown some signs of recovery after the government started implementing its 4 trillion yuan ($585 billion) economic stimulus package, Premier Wen Jiabao said.
“The government’s measures to tackle the financial crisis have shown preliminary results,” Wen said during an online chat with the public on the government’s Web site today. Wen cited rising loans, retail sales in January and growing power output and consumption since the middle of February as signs of relief.
China’s economy, the world’s third-largest, expanded by 6.8 percent in the fourth quarter, the slowest pace in seven years, as the global financial crisis trimmed exports and reduced industrial production. The government in November pledged 4 trillion yuan of spending on infrastructure and key projects, reduced benchmark lending rates five times since September and cut taxes on most exports to combat the effects of a slowdown.