China's economy will probably recover after a weak first half of 2009, as massive government investments start to kick in, creating enough new jobs and maintaining social stability. -- PHOTO: ASSOCIATED PRESS
BEIJING - CHINA'S economy will probably recover after a weak first half of 2009, as massive government investments start to kick in, a prominent economist said in remarks published on Wednesday.
Economists widely expect growth to slow to below 8 per cent in the first half of next year, the pace the government is targeting to create enough new jobs and thus maintain social stability.
Dr Li Yang, a researcher with the Chinese Academy of Social Sciences, said that as the government's 4 trillion yuan (S$850.9 billion) stimulus package rejuvenates investment, the most important driver of growth, China would be one of the first countries to see the downturn turn around.
Dr Li, quoted by the China Securities Journal, did not provide any detailed forecasts.
Other officials have repeatedly expressed confidence that the government can engineer 8 per cent growth next year.
Mr Liu He, a senior Communist Party official and deputy director of the central leading group for financial and economic affairs, said earlier this month that China would see its economy regain steam as early as in the second quarter of 2009. -- REUTERS
