‘Chinese economy may bounce back in second half of 2009′January 3rd, 2009 - 7:17 pm ICT by IANS
Kolkata, Jan 3 (IANS) The global economic slowdown has taken its toll on the Chinese economy as exports and equity markets are down, but things may turn around in the second half of 2009, a Chinese diplomat said here Saturday.”Worst is not yet over. The first half of 2009 will be difficult for China, but the second half may be a turning point for the economy,” China’s Consul General to India Mao Siwei said.
He was speaking at an interactive session on ‘China-India Real Estate and Architectural Cooperation’, organised by the Bharat Chamber of Commerce.
The Chinese economy has suffered as export to the US and Europe plummeted, Siwei said.
“The Chinese economy is export-oriented and as export growth has slowed down, the economy has suffered,” he said.
The Shanghai Composite Index of the Shanghai Stock Exchange dipped 60 percent in 2008 and the property prices are also falling in the country.
The Chinese government has announced a 4-trillion-yuan (around $586-billion) stimulus package to pump prime the economy and has pinpointed 10 focus areas, where this amount would be invested till 2010-end, Siwei said.
China has instructed the business houses in the country that the gross domestic product (GDP) growth rate should be maintained at 8 percent till economic condition is revived.
Before the economic meltdown, Chinese economy maintained a GDP growth rate of 10 percent, Siwei added.