China Targets 8% Growth for This Year

China insists that it can manage very positive growth in 2009

China has announced that it is on target to reach 8% growth in 2009. However, the Chinese do recognize the challenges. Stock Market Funding reports that Premier Wen Jiabao pointed this out about the global economy:

"First, the global financial crisis continues to spread and get worse. Demand continues to shrink on international markets; the trend toward global deflation is obvious; and trade protectionism is resurging," he said.

"The external economic environment has become more serious, and uncertainties have increased significantly."  

Last November, China announced a $585 billion economic stimulus package to help move things along. The Chinese government also says that it is planning to increase spending in areas of low-income housing, education and health care.  In addition to this type of spending, China also plans to diversify its investments, looking for returns in foreign holdings beyond US Treasuries.

It is possible that China could see 8% growth this year — in this recession any substantial growth is good. In the good times, China surpasses 10% growth per year.

See Also

• Economic News from Around the World
  Financial markets, especially the currency market

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