1. Introduction
China was the first major economy to emerge from the global financial crisis, and it did so in spectacular fashion. After a brief – though sharp – downturn in 2008, the Chinese economy grew by 8.7% in 2009 and by 10.4% in 2010, and the robust growth in China helped
a host of resource-rich countries avoid the economic downturn. A big factor behind this
enviable success was the massive stimulus programme introduced in the fourth quarter of 2008 and implemented through 2009 and 2010. The initial programme that was announced totalled 4 trillion yuan renminbi (CNY) (USD 586.68 billion), comprising CNY 1.18 trillion in central government funding plus local government inputs and bank credit. The package amounted to 12.5% of China’s GDP in 2008, to be spent over 27 months. In relative terms, this was the biggest stimulus package in the world, equal to three times the size of the United States effort.1
1. Introduction
China was the first major economy to emerge from the global financial crisis, and it did so in spectacular fashion. After a brief – though sharp – downturn in 2008, the Chinese economy grew by 8.7% in 2009 and by 10.4% in 2010, and the robust growth in China helped
a host of resource-rich countries avoid the economic downturn. A big factor behind this
enviable success was the massive stimulus programme introduced in the fourth quarter of 2008 and implemented through 2009 and 2010. The initial programme that was announced totalled 4 trillion yuan renminbi (CNY) (USD 586.68 billion), comprising CNY 1.18 trillion in central government funding plus local government inputs and bank credit. The package amounted to 12.5% of China’s GDP in 2008, to be spent over 27 months. In relative terms, this was the biggest stimulus package in the world, equal to three times the size of the United States effort.1
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