'Chinese economy can secure figure of eight' – World Bank Economist

24 Mar '09

2 min read

Vice President and Chief Economist of the World Bank, Mr Justin Yifu Lin publicly expressed that, “China's economic growth is expected to secure the 'figure of eight' with the support of China's financial fund of four trillion Yuan".

Mr Lin said, “The Chinese economy can certainly be promising in another two or three decades, if the four trillion Yuan of fiscal stimulus plan is invested to improve infrastructure of rural areas and second-tier inland cities."

He added by saying, “When other countries are in recession, China can still move forward and we if we look at purchasing power parity, China is probably on its way to becoming the world's largest economy in 2020”.

Mr Justin thinks that China's economic growth this year in all probability will 'secure the figure of eight' because, the intensity of China's fiscal stimulus is quite large. 4 Trillion Yuan means 15 percent of China's GDP”.

“The amount when spent in a period of two years means, an average growth of 7.5-8 percent per year and this intensity far exceeds the strength generated by the recently declared financial stimulus package of the US”, he continued.

“So”, he said, “It will not be a problem for China to generate an average growth rate of 7-8 percent under the impact of the stimulus policy adopted by the Chinese government for the next two years”.

“Of course, compared with the past, it is quite a significant drop, but when compared with growth rates of other countries, China's economy would still be the world's fastest-growing economy”, he concluded by saying.

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