One Of The World's Biggest Commodity Companies Says China's 500 New Stimulus Projects Are Turning The Economy Around

Rio Tino is one of the biggest commodity players in the world, and its fortunes are highly geared towards China.

So what it has to say about the country should be listened to.

In an earnings report that came out today (via @spbaines), it said that the stimulus is going into high gear and that GDP is rebounding.

“We have been signalling for some time that markets would remain volatile and we have seen challenging conditions in the first half. Although sentiment remains negative in Europe and the US recovery is still fragile, our order books are full and we expect Chinese GDP growth to be around eight per cent in 2012. We expect to see signs of improvements in Chinese economic activity by the end of the year, with growth picking up more strongly as Government stimulus measures announced in the second quarter begin to flow through to infrastructure investment. Around 500 of these investment projects are slated to start later this year and in 2013.

This slide from the company’s earnings presentation breaks down all the measures:

china stimulus

Photo: Rio Tinto

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