Sunday, November 9, 2008

China Unveils $586B Stimulus Plan

BEIJING — China unveiled a $586 billion stimulus package Sunday in its biggest move to inoculate the world's fourth-largest economy against the global financial crisis.

China's export-driven economy is starting to feel the pinch of weakening U.S. and European economies, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion.

Economic growth slowed to 9 percent in the third quarter, the lowest level in five years and a sharp decline from last year's 11.9 percent.

That is considered dangerously slow for a government that needs to create jobs for millions of new workers who enter the economy every year.

No comments: