On fears of slowing growth at home and abroad, China announced Monday is it set to invest in a $1.7 trillion stimulus program over the next five years to ensure economic growth.
"Global economic conditions remain grim, and ensuring economic recovery is the overriding priority," said Chinese Vice-Premier Wang Qishan, Reuters reports. "[And] an unbalanced recovery would be better than a balanced recession."
Gross domestic product averaged 9.7% in China from 2008 to 2010, but since the beginning of this year growth has been slowing. The country's GDP has slowed to 9.1% in the third quarter, from 9.5% in the second and 9.7% from the first.
There's been much discussion by economists — even here on The Daily Ticker — over whether China can maintain those near double-digit growth patterns. Evan Smith, co-manager of the Global Resources Fund at U.S. Global Investors, "worries about it a lot," he says referring to a so-called hard-landing there.
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