Wen Jiabao Announces $158bn Stimulus Plan
Created: 2012-09-12 10:42 EST
China is ready to inject a 100 billion yuan, or $158 billion, fiscal stability fund into the economy if it is needed, Premier Wen Jiabao said on Tuesday. Wen was attending the World Economic Forum held in China’s eastern port city of Tianjin.
Wen’s words were geared at assuring investors that China was preparing to meet the 2012 growth target despite a slowing economy.
[Chinese Premier Wen Jiabao]:
"There is around 100 billion yuan left in the stabilization fund as of this year. We will implement it as a pre-emptive and fine-tuning measure to boost growth if needed."
The stabilization fund is built from accumulated surpluses in previous years.
Economic growth in China has slowed for six consecutive quarters and could slide into a seventh. That’s despite authorities’ calls to boost exports and a loosening of fiscal policies, like cutting rates and lowering bank reserves.
The Chinese regime’s last major stimulus package was back in 2008 during the world economic crisis. That package saw an injection of 4 trillion yuan ($635 billion) into the economy.