huangthomas

World Bank Report Reveals Gloomier Chinese Outlook

Published data from World Bank is essentially the same as what were published by the Chinese government. I would like to remind everyone that the deputy chief of the World Bank, Lin Yi-Fu is from China. The data you see here is almost identical with what was issued from Beijing, The stimulus package is an ongoing program plus a few extra to keep Chinese GDP growing at 7 + 1.5% = 8.5%. The measure is followed by cut in interest rate of 1.08% and dramatic deprecitation of CNY (RMB) to stimulate exports. Chinese export industries are in dire shape. They were worse than what the government expected. The export industries is labor-intensitve and the labors will see little benefit from building rails, high ways, or low income housing. We have to watch which way things go and to see how intelligent Chinese governmnet handling the stituation. So far they are doing a descent job.