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China's economy expanded a blistering 8.9% in the third quarter, fuelled by lavish government spending that has helped it spearhead recovery from the global recession.
Government figures today showed growth in the world's third-largest economy increased from 7.9% in the second quarter. Officials said they expect the economy to at least reach the annual growth target of 8%.
It is hoped that figures out tomorrow will show the UK finally pulled out of recession in the third quarter although the British economy is set to shrink by more than 4% this year.
China has countered the global downturn with a 4 trillion yuan stimulus plan involving massive spending on infrastructure such as rail and roads to pump up the domestic economy as exports dived.
“China's doing fine. They threw so much money at it that if it wasn't it would be surprising,” said Standard Chartered Bank economist Stephen Green.
Reader views (3)
Sadly this is a red herring. Internally boosted Chinese deamnd helps China and has no impact on the the rest of the world except the mining companies in Australia, Indonesia and Latin America. Even then it just means they invest nothing because unutilized capacity is used and profits soar as operational gearing kicks in!
- James Macleod Ritchie, Oyster Bay Cove
So commodities up, dollar down, inflation up,petrol prices food and energy bills up and Brown and cohorts are going to put the taxes up, what a depressing thought, nevermind think I'll become an MP instead and get a guaranteed pension, loads of perks, freebies a peerage later on that lets me into the old boys club for an afternoon snooze and more!
- Wallytrader, London
As long as you can keep throwing money at a problem it's OK. I'd like to hear what some of our 'experts' have to say. Perhaps Gordon Brown and his cohorts have been right all along. Pump limitless amounts of money into the economy and everything will come out alright. And why not? It's only money after all, and who ever heard of a country going bankrupt? What ever happens? Who forecloses on a country? And remember all those third world countries who had countless millions written off? Well then that is what happens in the final analysis when countries borrow too much in todays world. The debt can be written off now lets get back to where we were.
- Cyrjames, Berwick UK
