Signs of Economic Recovery Seen by China

In Beijing, it was earlier reported that the timely action of China to support their economy is now bearing fruit. This was mentioned by the central bank governor names Zhou Xiaochuan last Thursday. In one paper that was placed on People’s Bank of China website, (which is www.pbc.gov.cn), president Zhoue said that there were many steps taken by the authorities to arrest the continuing slowdown of the third largest economy in the world. Additionally, there were also some signs or green shoots that show recovery. The overall picture shows that the different macroeconomic measures that were put in effect have now produced some pretty good preliminary results. There were also some leading indicators that point towards the recovery of their economic growth. This also indicates that the rapid decline on their growth is now slowly but surely being curbed.

Prompt Measures Taken by the Government

There are many facts that also point to as well as demonstrate that when the Chinese economy is compared with other kinds of major economies, the government of the former has done its job. The Chinese government has been able to come up with prompt and highly decisive as well as effective policy measures which further demonstrates their superior systemic advantage especially when it boils down to the vital policy decisions. This note, which was presented in English and also in Chinese, had been published one whole week before the Group of Twenty leaders of many developed and emerging economies had met with one another in London in order to assess the situation of the financial crisis of the world. Zhou also notes that such was his third essay for this week. Last Monday, he had decided to set out his vision of just how the SDR or the Special Drawing Right, the IMF or the International Monetary Fund’s standard reserve asset could supplant their dollar as the reserve currency of the world.

More Notes by Zhou

Last Thursday’s paper also indicates that Zhou had noted in one meeting of the G20 in Sau Paulo that the group PBOC had decided to cut the interest rate five whole times as well as lower the reserve requirements four whole times ever since September. This was intended to prop up the growth of the nation’s economy. Aside from this, the Chinese government has also decided to launch their four trillion Yuan (or roughly the equivalent of five hundred and eighty five billion dollars) fiscal package and then roll out the measures that could work to revitalize around ten key industrial sectors. All of these measures will mean that China can expect the maintenance of their economic growth and stability in order to boost the domestic demand and later on reduce their dependence on many external demands. This will then serve as the stabilizing force of the global economy.