What’s a Few Trillion Yuan Between Comrades?
Posted on Nov 9, 2008
Instead of buying lots of new cheap things, people are busy stuffing what’s left of their money in mattresses. That has China, where the goodies come from, worried. The Chinese government has decided a stimulus is in order, to the tune of 4 trillion yuan (more than $550 billion).
China has announced a 4tn yuan (£375bn) stimulus package to shore up its economy. The size of the injection - which amounts to a sixth of the country’s gross domestic product last year, according to official figures - is an indication of the government’s alarm at evidence that growth is slowing dramatically in the world’s fourth-largest economy.
China is anxious to boost domestic demand to offset a sharp fall in exports and so safeguard social stability.
Flickr / Rain Rannu