Tonight:
4°c
Hopes taking hold of a revival in China
13 Feb 2009Economists say there is a glimmer of hope that China's giant stimulus package is already showing signs of success, and that its economy could be one of the first out of recession.
Beijing is spending four trillion yuan (£404 billion) to try to get things moving again.
Consensus in a survey of economists carried out by Bloomberg is that the economy may expand by 6.6% in the second quarter after slowing to 6.3% in the three months to March, the weakest pace since 1999. The crisis, which was caused in large part by a collapse in exports, has already cost 20 million jobs in the country, raising the risk of social unrest and even the downfall of the current government.
The giant spending package for roads, railways and housing has already given some support for iron ore, put a floor under industrial output and helped to drive a record £164 billion of new loans made by banks in January.
