10/22/2009, 00.00
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The Chinese economy grows by 8.9%

In one year it has grown by 7.7%. But there are fears that the growth is mainly due to the stimulus package launched by the government. World Bank: 80% of the growth is due to the loans distributed by the state. Strong inflation and high unemployment takes its toll on the population while wages continue to shrink.

Beijing (AsiaNews / Agencies) - The gross domestic product (GDP) of the third quarter grew in China, by 8, 9%, the highest in the year, according to data published today by the Bureau of Statistics. Last quarter it was at 7.9%. In one year, growth was 7.7%, confirming China as the country in the best position emerging from the global economic crisis.

The figures, which also show a growth in industrial output (+12.4%), are leading to hopes that by the end of 2009 the GDP will rise to 8%. Vice-premier Li Keqiang states that there is "a very good possibility" that China can achieve the goal of 8% growth in a year, a level considered necessary to provide employment and reduce social tensions.

According to several economists, the recovery is the result of the anti-crisis package that Beijing launched earlier this year with strong emissions of capital onto the market and indiscriminate granting of bank loans. According to the World Bank, more than 80% of growth this year is the product of State support.

At the grassroots level, the population is struggling with increasingly high consumer prices. At the same time, tens of millions of migrant workers who were laid off (due to a fall in exports), are now being re-employed but with wages even lower than before. Experts say the real challenge that Beijing currently faces is to withdraw the stimulus without bringing down the economy. Last August, a reduction of loans led to a drop of 20% in the Shanghai stock exchange.



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