Thursday, July 16, 2009, AM | 4 Comments
China’s economy accelerated in the second quarter amid huge stimulus spending and aggressive bank lending, expanding by 7.9 percent from a year earlier as retail sales and industrial output grew strongly, data showed Thursday.
The growth rate, reported by the National Bureau of Statistics, was up from 6.1 percent in the first quarter. The government’s growth target for this year is 8 percent. The gross domestic product figures are also surprising given how China’s exports have declined sharply after years of torrid growth.
Many analysts expect China to be the first major country to emerge from the worst global economic slump since the 1930s.
The robust growth in China’s economy came as the United States and several other leading economies remain mired in recession, hobbled by the aftereffects of bad lending, weak real estate markets, and the uneven results of economic stimulus packages.
In China, strong auto and housing sales, a soaring stock market and solid retail sales have helped renew confidence here.
The government is trying to use its stimulus to insulate China from the global downturn by pumping money into the economy through higher spending on public works construction.
Moral of the story
What has he got that I ain’t got, maybe I was born this way.