Chinese government to plough cash into construction
Economists believe the Chinese government will ramp up construction investment after recording a seventh consecutive quarter of slowing growth
Figures from the National Bureau of Statistics of China this week showed a year-on-year rise in GDP of 7.4 per cent in the third quarter of this year.
But this was down from 7.6 per cent in the second quarter, and 8.1 per cent in the first three months of this year.
The Royal Institution of Chartered Surveyors (RICS) said, ahead of the data being released ,that growth in large infrastructure investment projects had accelerated in recent months.
RICS economist Andy Wu told the AJ: ‘The authorities have sped up the approval process for various investment projects over the past few months in an attempt to jump-start the slowing economy.
The Chinese economy is showing signs of finally bottoming out
‘Recently released data suggest the Chinese economy is showing signs of finally bottoming out. Indeed, the economy looks set to reaccelerate in Q4 partly due to the fact that policies implemented in previous quarters should finally have their intended effect.’
He added: ‘The Chinese government is giving top priority to maintaining stability and restoring growth and hence policy implementation is expected to be enhanced further if the economy fails to regain momentum during the rest of the year.’
Total planned investment in newly started projects was 22,686.6 billion yuan (£2.2 trillion) in the first nine months of 2012.
This represents a year-on-year increase of 25.7 percent.
Investment in fixed assets, excluding rural households, was 20.5 per cent higher in the first nine months of this year than the same period in 2011.
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