Thursday, 5 March 2009
No new stimulus package from Premier Wen’s working report
Disappointment to the market expectation, there is NO new stimulus package announced by Premier Wen’s government working report today. The government still targets 8% GDP growth and CPI controlled under 4% in 2009. Although no new stimulus package is announced today, it does not mean less support from the government to boost the economy.
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No new stimulus package from Premier Wen’s working report
Disappointment to the market expectation, there is NO new stimulus package announced by Premier Wen’s government working report today. The government still targets 8% GDP growth and CPI controlled under 4% in 2009. Although no new stimulus package is announced today, it does not mean less support from the government to boost the economy.
Usually there won’t be new policy announcement in the government working report as the report focus on the guideline but not specific policies. However, as the government emphasizes the importance to achieve 8% growth, it may introduce more supportive measures to boost the economy in the future especially if economy deteriorates faster than expected.
Currently the focus may be on implementation of the already announced supportive measures effectively. Back in 1998, Beijing initiated large scale stimulus package in the second half when economic slowdown worsened. Therefore it is still likely that government may adopt more stimulus package in the future and the focus should be on consumption but not investment next time.
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