Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

China says economy stabilizing after long slowdown

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
Associated Press
Published:
BEIJING -- China's government tried Monday to reassure companies and its public about the economy's health, saying growth is stabilizing after a lengthy decline and should hit the official target of 7.5 percent for the year.
The announcement by the chief spokesman for the Cabinet's statistics agency was part of official efforts to defuse unease about the country's deepest slump since the 2008 global crisis.
"There are growing signs of stabilization and also of further growth," said the spokesman, Sheng Laiyun, at a news briefing. "We are confident we can hit our full-year growth target."
Sheng gave no updated data but cited previously released figures that showed industrial production and other parts of the economy improved in July.
Economic growth fell to 7.5 percent in the three months ending in June after declining steadily for 10 straight quarters. Sheng said it was the longest such slowdown since China's market-style reforms began three decades ago.
The International Monetary Fund and private sector analysts have cut this year's growth forecasts for China, though to a still healthy level of close to 8 percent. Some analysts say growth could dip below 7 percent in coming quarters.
The slowdown was largely due to government efforts to reduce reliance on trade and investment that drove the past decade's boom and nurture more self-sustaining growth based on domestic consumption.
Still, the downturn has been deeper than forecast, due to unexpectedly weak global demand for Chinese goods. That raised concern about higher unemployment, which could fuel political tensions, but the government says the economy is still generating new jobs.
Sheng also downplayed concern about debts owed by local governments that borrowed heavily over the past decade, in part to pay for building projects under Beijing's stimulus in response to the 2008 crisis. Some analysts worry the economy could suffer if local governments default, hurting the state-owned banking industry.
An audit last year found local governments ran up debts of 10.7 trillion yuan ($1.6 trillion) over the preceding decade, equal to about one-quarter of China's annual economic output.
Sheng said some local governments have paid down their debts while others are rolling out plans to manage them.
"We are monitoring the situation carefully and right now the issue is under control," he said.

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus