China to maintain prudent monetary policy in 2013
Associated Press
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Published 5:32 am, Sunday, December 16, 2012
The world's second-largest economy is gradually pulling out of its deepest slump since the 2008 global crisis, but weaker-than-expected November trade data prompted suggestions the rebound might be faltering. The leadership under party General Secretary Xi Jinping pledged a "proactive fiscal policy" and "prudent monetary policy" in a statement distributed by the official Xinhua News Agency, referring to willingness to boost spending if needed and keep credit easy so long as inflation stays low. Xi and other leaders who were installed last month in a once-a-decade handover of power are under pressure to overhaul an economic model based on exports and investment that delivered 30 years of rapid growth but is running out of steam. The World Bank and other analysts say Beijing needs to curb dominant state companies and promote service industries and consumer spending to keep incomes rising. Other changes require longer-term effort, such as freeing up money in household budgets by raising government spending on schools, health care and other social programs. Reported by SeattlePI.com 8 hours ago.
Associated Press
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Published 5:32 am, Sunday, December 16, 2012
The world's second-largest economy is gradually pulling out of its deepest slump since the 2008 global crisis, but weaker-than-expected November trade data prompted suggestions the rebound might be faltering. The leadership under party General Secretary Xi Jinping pledged a "proactive fiscal policy" and "prudent monetary policy" in a statement distributed by the official Xinhua News Agency, referring to willingness to boost spending if needed and keep credit easy so long as inflation stays low. Xi and other leaders who were installed last month in a once-a-decade handover of power are under pressure to overhaul an economic model based on exports and investment that delivered 30 years of rapid growth but is running out of steam. The World Bank and other analysts say Beijing needs to curb dominant state companies and promote service industries and consumer spending to keep incomes rising. Other changes require longer-term effort, such as freeing up money in household budgets by raising government spending on schools, health care and other social programs. Reported by SeattlePI.com 8 hours ago.