The dual downturn of China’s CPI and PPI in May has aroused a lot of speculation on the prospect of the world’s third largest economy for 2009.

Will China get out of the bottom this year? What influence will possible scenarios in China have on the whole picture of the world economy which is struggling in the global financial crisis?

More figures of economic indicators will be announced these days. And we will hear different voices following that.

Forecast for 2009
Foreign trade downturn weakens recovery
Economic data in May showed that China's economy has shown positive changes, but there is not yet a solid basis for rebound due to weak external demand.

China's economy to bottom out this year, growth target a tall order
China's economy is expected to hit bottom and recover within this year However, the eight percent growth rate target is still an arduous task to achieve.

China needs more flexible economic policy in second half 2009
With the economic conditions of major trading partners such as the US showing signs of stability, the external uncertainties facing China's economy are decreasing

George Soros: China a 'positive force'
Soros said in Shanghai that China's influence is set to grow faster than before, as its banking system is kept healthy and kicking, and a prompt and strong government intervention to rev up a slowing economy late last year.


Source: ChinaDaily

Think tank: Chinese economy bottoming out, but to stage U-turn recovery
Chinese economy has bottomed out and is stabilizing against the global economic downturn, but it would go through a U-turn recovery as a quick recovery could hardly be sustained

NBS debunks IEA charges
"The viewpoint is groundless," the National Bureau of Statistics (NBS) said in an interview posted on its website yesterday. "It made a mistake to oversimplify the correlation between economic growth and energy use."

Data & Analysis of May
Fiscal revenue
China's fiscal revenue up 4.8% in May
The ministry attributed the revenue decline mainly to shrinking business profits amid the tough period and active fiscal policies including tax cuts and increased export tax rebates to buoy economic growth.

FDI
Used FDI down 20.4% in first five months in China
China to remain a FDI's favorite
With the development of China's economy and implementation of more supporting policies, it's reasonable to believe that China will still be one of the best choices of global FDI

New bank loans
China's new bank loans rise to 664.5 bln yuan in May

Retail sales
China's retail sales up 15.2% in May

Industrial output
China's industrial output up 8.9% in May
Heavy industry props up highest output rebound in 7 months
The heavy industry was hit hard by the global financial crisis and had been slumping fast since September last year. Its growth rate had been below that of the light industry till April.

Foreign trade
China's foreign trade down for seventh month

Urban fixed-asset investment
China urban fixed-asset investment up 32.9% in first five months

PMI
China's PMI of manufacturing sector stands at 53.1% in May
A reading of above 50 suggests expansion, while one below 50 indicates contraction.

CPI
China's CPI falls 1.4% in May
Grain, service prices may push up CPI
Deflation eases

PPI
China PPI down 7.2% in May year on year
Analysis: What led to the continuous decline of PPI in May?

Auto market
China auto sales increase in first five months
China's auto sales to hit 11 mln in 2009
The risk in China's brisk car market

Capital market
Vigorous trading on China's capital markets
Its vigorous performance proved from another aspect that China's economy is bottoming out and has gradually regained its confidence.

Port throughput
China's port cargo throughput grows for 3 consecutive months

Real estate market
China's real estate index up in May
Housing sales price index of 70 major cities fell in May

By People's Daily Online