China’s GDP Grows by 9 Percent in 2008

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Jan. 22 – China’s National Bureau of Statistics announced that gross domestic product (GDP) grew by 9 percent to RMB30.067 trillion in 2008.

This is the first time since 2003 that China reported less than double-digit growth and is the slowest growth since 2001, when GDP rate was 8.3 percent.

China’s exports have been pummeled by the global recession and forced the government to spend more and implement tax cuts. In the last quarter of 2008, GDP expanded by 6.8 percent in contrast to a 9 percent gain in the previous quarter.

The government will need to keep to maintain an 8 percent GDP rate for this year to provide jobs for migrant workers and graduating students. A figure less than 8 percent may pose as a threat to Communist Party rule when the slowing economy festers more cases of civil unrest.

“The international financial crisis is deepening and spreading, while its negative impact on domestic economy is continuing,” said Ma Jiantang, director of the NBS, said during a press conference.

According to Bloomberg, Premier Wen Jiabao said this week that the government must work urgently this quarter to reverse the slowdown and maintain social stability amid a “very grim” outlook for jobs.

The Chinese government is doing everything it can to stave off the slowdown. It has already asked state-owned banks to boost lending, released a RMB4 trillion stimulus plan, decrease export taxes in addition to extending support to its top 10 industries.