(1888PressRelease)
November 08, 2008 - London, A government-backed survey released last week also showed a record contraction, fueling fears of a slowdown in the world’s fourth-largest economy. The government-backed purchasing managers' index fell to 44.6 in October from 51.2 in September- the lowest reading since 2005 when the survey began.
Chinese Premier Wen Jiabao, in a signed article in a journal published by the Communist Party wrote “this year is the worst in recent times for our economic development."
“The global financial turmoil and the economic downturn are getting worse. Inflationary pressure remains large as world oil prices are still at a high level despite some corrections… All these negative factors have affected and will continue to affect China," he added.
Wen also urged a boost to domestic consumption to reduce the country's dependence on exports and therefore its exposure to external risks.
Despite a raft of measures introduced by the Chinese government, growth has slowed faster than expected. In the third quarter economic growth slowed to 9 percent – the lowest in five years, and considerably slower than last year’s 11.9 percent.
In their attempt to boost growth regulators have cut interest rates three times in the past six week while promising 1 billion yuan to small businesses. The government expanded tax rebates to textile exporters and pledged increased spending on infrastructure.
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