China Announces Major Projects to Boost Growth
Provincial projects worth more than $149.25-B were launched this week as China strives to boost growth, Shanghai Securities News reported Friday.
The projects are mostly infrastructure-related, with the southwest province of Sichuan introducing nine highway projects worth RMB Yuan 128.8.
The Inner Mongolia Autonomous Region in the north unveiled 366 projects worth RMB Yuan 739.6-B, including infrastructure, industrial parks and city planning.
The projects were unveiled as the National Development and Reform Commission (NDRC), China’s top planner, urged faster approval procedures and vigorous implementation of projects under the country’s 13th Five-Year Plan.
In the 1st 8 months, China’s infrastructure investment rose 19.7% Y-Y, gaining 0.1% from the January-July period, according to data from the National Bureau of Statistics.
“The 20% infrastructure investment growth is not enough to stabilize growth. The rate needs to be 22 or 23%,” said Lian Ping, chief economist at the Bank of Communications.
The growth of infrastructure investment is likely to accelerate in Q-4 with implementation of major projects, faster approval by the NDRC and operation of public-private partnership (PPP) projects, he said.
The NDRC introduced a new list of PPP projects with RMB Yuan 2.14-T in total investment on 14 September as part of its efforts to promote investment amid an economic slowdown.
It approved infrastructure projects worth more than RMB Yuan 1-T in the 1st 8 months, including nearly RMB Yuan 285-B in July and August.
China’s economy grew 6.7% in Q-2 of this year, the lowest quarterly growth since the global financial crisis in early Y 2009, but still within the government’s target range of 6.5-7% for Y 2016.
The economic data released this month, from industrial output to retail sales showed rebounding economic activity in August, boosted by government infrastructure spending and property sales.
Infrastructure investment is a Key engine in China’s economy, contributing 29.4% to total investment growth in Y 2015.
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