China to Invest Multiple Billions in Infrastructure Improvements

(Continued)

Some claim the infrastructure investment program is not quite as large as might be thought because of the amount of money being claimed since more than half of it comes from previously allocated funding. Be that as it may, there is infusion of fresh capital into these projects.

There has been a reduction in export orders for China accompanied by a decline in domestic consumption. Where last year’s gross domestic product (GDP) grew by 11.4%, current projections are that 2008 will finish with just 9.4% growth in GDP. Following on the heels of consistent double-digit annual growth, the Chinese government is attempting to get ahead of the wave of the world’s economic malaise. Projections for economic growth for 2009 range from an annual 8.6% to the Asian Development Bank’s forecast of 9.5% growth for 2009.