Photo: Feng Li/Getty Images
China just released its latest data dump which showed Q3 GDP rising 7.4 per cent, but slowing from 7.6 per cent the previous quarter.Ahead of the data release Chinese premier Wen Jiabao had said that growth is stabilizing.
After a series of meetings with corporate executives, local government officials, and academics from October 12 – 15, Wen is said to be confident that the government will meet its growth target of 7.5 per cent in 2012, according to Xinhua.
Of course China has often been criticised for doctoring its data, but here are they key points from his meeting via Bank of America’s Ting Lu:
- “GDP growth has started to stabilise and show some positive changes. The economy is relatively good in 3Q. With easing/stimulus measures being carried, the Chinese economy will be further stabilised. The government is confident to achieve its annual targets (note GDP growth target is 7.5%) despite difficulties.”
- “The government did not introduce too big stimulus this year. But the government is very determined in stabilizing growth. Major policy actions include: (1) Quicken fiscal expenditure and step up tax cut, but the government will spend within budget; (2) Monetary easing including RRR and rate cuts; (3) Encourage private investment.”
- “The steel sector’s major problem is over-capacity. The government is resolute in cutting capacity. He will stick to property tightening, but will also improve government’s intervention by emphasising more market-oriented measures. “