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CHINA> National
WB, US, Brazil hail China's economic stimulus plan
(Xinhua)
Updated: 2008-11-10 11:38

SAO PAULO -- The World Bank, United States and Brazil have hailed China's massive domestic economic stimulus plan in the face of the global financial crisis.

The move could also benefit other nations in the aftermath of the crisis, David McCormick, the US Treasury Department's undersecretary for international affairs, told reporters Sunday.

McCormick was attending the annual meeting of finance ministers and central bank governors of the Group of 20 (G20) developed countries and emergent economies in Sao Paulo.

At the end of the two-day meeting that concluded Sunday, the G20 announced a set of measures including fiscal incentives and greater international coordination for better control over the global financial system.

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China said Sunday it will loosen credit conditions, cut taxes and embark on a massive infrastructure spending program in a wide-ranging effort to offset adverse global economic conditions by boosting domestic demand.

A stimulus package estimated at 4 trillion yuan ($570 billion) will be spent over the next two years to finance programs in 10 major areas, such as low-income housing, rural infrastructure and transportation.

Brazilian Finance Minister Guido Mantega, who chaired the Sao Paulo meeting, said China has taken "the lead" with the plan to avoid an economic slowdown amid the international financial turmoil.

He said China's plan is an "anti-cyclic" policy to avoid the shrinking of the economy.

On Saturday, World Bank head Robert Zoellick, who also attended the G20 meeting, said China is preparing for a strong fiscal expansion as a response to the economic situation at home.

Calling the move "very wise," Zoellick said China's policy of investment expansion and increased infrastructure inputs could be a model for other countries.

 

 

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