ISLAMABAD – Pipelines, highway and roads to run from Gwadar to Kashgar which will give China access to Indian Ocean and beyond, as well expanding its influence into Central Asia and South Asia. For Pakistan, the projects will bring a huge boost to its economy.
China’s economy has slowed for a seventh quarter as problems in Europe and the US hurt demand for its goods. The annual rate of growth was 7.4% in the third quarter, down from 7.6% in the previous three months.
China’s growth over the past few years has been led by the success of its export and manufacturing sector, as well as by a credit-fuelled investment boom directed by the government. However, China also released other key economic indicators alongside its gross domestic product (GDP) data, which indicate that things may be starting to pick up again.
China’s industrial production rose by a more-than-expected 9.2% in September from a year earlier. That was up from 8.9% growth in August.
Retail sales, meanwhile, during the same month were 14.2% higher than a year earlier, signalling that domestic consumption was growing.
China has announced various stimulus measures in recent months aimed at boosting domestic consumption and sustaining growth.
It has cut interest rates twice since June to reduce the burden on businesses and other borrowers.
Beijing has also approved infrastructure projects worth more than $150bn (£94bn), aimed at spurring a fresh wave of economic development.
So finally the Chancellor of the Excequer is going to admit what we all have known from the moment he announced his plan to cut the deficit within the lifetime of this parliament, namely that his ill thought out scheme is unrealistic and could yet cause long term damage to the economic health of this country.
If as the Business Secretary claims we are in the midst of an economic equivalent of a war, then perhaps David Cameron and the rest of his well -heeled Notting Hill Set should take a close look at the health of the troops that are the citizens of the country.
Throwing large numbers of people onthe scrapheep will not achieve a recovery – I know economists will not tell you that, they are too busy with the figures to look at the social cost of their theories, however any recovery must be based on a workforce being given a chance to be productive.
There’s no other way – money printing is a short term solution, which only result in a rise in the price of Gold, as savers scramble to protect themselves.
Infrastructure projects will create work, there are again so did public sector jobs in the north of England.
Who’d have thought it!
This country’s GDP grew by 0.2 per cent in the second quarter of this year.
That was considerably less than the 0.7 per cent projected growth forecast.
A variety of factors were blamed for this contraction – the Royal wedding, wasn’t that supposed to bring in money, the weather, there may be a point here the weather has been very testing to everyone, etc. News reports have carried different points of view from the inexperienced Chancellor of the Exequer to the equally inexperienced leader of the opposition.
This country is still generating a trillion pounds a year, something that hasn’t changed.
That means George Osbourne has not done anything wrong there, where the danger lies is in his plan to cut the deficit within the lifetime of this government – that will cause real long term damage.