Sunday, November 23, 2008

$1.5 trillion package for China's economy

Projects planned by provincial governments will add an additional 10 trillion yuan ($1.464 trillion) to the value of China's economic stimulus package, state television said on Sunday, even as the country's premier called on businesses to keep up their confidence.

The central government earlier this month announced a 4 trillion yuan stimulus package, including rail and infrastructure projects as well as increased social spending, as China strives to offset a sharp drop in demand for the exports which fuel its economy.

The People's Bank of China will need to pay more attention to the structural adjustment of the economy, as it combats the impact of the global financial crisis, governor Zhou Xiaochuan said in remarks published on the central bank's website Sunday.

He called for "more understanding of the financial requirements of the restructuring" and reiterated that small and medium enterprises, the service sector, energy-efficient projects and rural projects were priorities for financial support.

Despite strong talk of boosting China's domestic consumption, details of specific new projects and areas of spending are only slowly emerging.

Source: Agencies

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