🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-IMF says China econ signs encouraging; more data needed

Published 05/08/2009, 01:22 AM
Updated 05/08/2009, 01:32 AM

(Adds details, background)

HONG KONG, May 8 (Reuters) - The International Monetary Fund (IMF) on Friday said recent economic data from China was "very encouraging" but more data for the months ahead was needed to determine whether the rebound was sustainable.

"In China, we have very encouraging indicators on investment and bank lending, suggesting that the economy is snapping back more vigorously than we previously expected. But the numbers are distorted by the Lunar New Year (holiday) so we need more numbers," Joshua Felman, assistant director of the IMF's Asia and Pacific Department told reporters in Hong Kong on Friday.

The IMF this week forecast China's economy would grow only 6.5 percent this year and 7.5 percent in 2010 -- down from 9 percent growth in 2008 and five years of double-digit growth prior to that -- but Felman said those forecasts could be revised later this year.

The Chinese government has forecast economic expansion at 8 percent this year, which is regarded as the minimum growth rate required to create enough jobs to ward off social unrest.

An official purchasing managers' index report published last week showed manufacturing activity in China rose for a second straight month in April, raising hopes the economy is firmly on a recovery path after slowing sharply in recent months.

Beijing announced a massive 4 trillion yuan ($585 billion) stimulus package late last year. It has urged banks to speed up lending and encouraged domestic consumption to reduce the impact from a slump in exports due to the global financial crisis.

(Reporting by Susan Fenton; Editing by Chris Lewis)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.