China to ‘Significantly Increase’ Spending to Revive Growth
Premier Wen Jiabao said China will “significantly increase” investment in 2009, widening efforts to meet the 8 percent economic growth target that it says is needed to protect jobs.
“We face unprecedented difficulties and challenges,” Wen told delegates to China’s parliament in Beijing today. The nation needs to “reverse the economic slide as soon as possible,” he said, without announcing an increase to the government’s 4 trillion yuan ($585 billion) stimulus package.
China’s export collapse has dragged the economy to its weakest growth in seven years and cost the jobs of 20 million migrant workers, adding to the risk of social unrest. The Shanghai Composite Index rose 0.7 percent as of 9:55 a.m. local time, extending the biggest rally in four months.
[Article originally posted on Bloomberg] Continue reading