Government mulls $54b stimulus package
26 August 2008
China's government is considering introducing a US$54 billion stimulus package including tax cuts and increased fiscal spending, AFP reported, citing state media. Reports of the plan come as concerns been raised over flagging exports and a slowdown in the US that also threatens growth in Japan and the Eurozone. China's GDP growth slowed to 10.4% in the first half of 2008, down from 11.9% for the full year of 2007 due partly to slowing export growth. The proposed plan is intended to "give the economy some breathing room" following monetary tightening measures, according to the state media report.