11 Sep 2009

China 'likely' to meet growth target

9:05 pm on 11 September 2009

New figures on the performance of China's economy show it is likely to meet its target of 8% growth this year.

Observers say the Communist country needs to meet that target to maintain social stability, the BBC reports.

The latest data published in China reinforces the view that an economic recovery is under way.

The country's $US580 billion economic stimulus package and huge amounts of credit handed out by the state-owned banks have helped boost the economy, even as exports continue to fall.

In the first eight months of the year, exports were more than a fifth lower than during the same period a year before.

The optimists say growth - even growth propped up by public spending - is something to celebrate.

The pessimists worry that continued expansion in credit could lead to asset bubbles in the housing and stock markets which, in the longer term, might harm the recovery.