China rolls out mini-stimulus
BEIJING (AP) — China is rolling out a mini-stimulus to fight its economic slump but is moving cautiously after its massive response to the 2008 global crisis left a painful hangover of inflation and debt.
Beijing has yet to announce a total price tag. But measures announced piecemeal in recent weeks include 66 billion yuan ($10 billion) to build affordable housing and 26.5 billion yuan to subsidize sales of energy-efficient appliances.
That limited size should make the effort more manageable than the 4 trillion yuan ($586 billion) avalanche of spending and bank loans in 2008. But its power to boost growth in a $2.5 trillion economy also will be smaller.
Still, analysts say the measures should be enough to drive a rebound and keep growth for the year at or slightly above 8 percent.
"I do think it will make a big difference," said Nomura economist Zhiwei Zhang.
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