March 5 (Bloomberg) -- China cannot pull the world economy “out of the hole” through its stimulus spending alone and the global recession is not going to end anytime soon, investor Jim Rogers said.
China’s parliament convened today in its annual meeting in Beijing, where Premier Wen Jiabao reiterated the government’s pledge to “significantly increase” investment in 2009 to help counter the slowest growth in seven years. He didn’t announce any new stimulus spending.
“China can’t solve the world’s problems,” Rogers, the author of “A Bull in China: Investing Profitably In The World’s Greatest Market,” said in a phone interview today. “China is a wonderful and growing economy but it cannot pull the world out of the hole.”
Wen’s report to lawmakers, the equivalent of a U.S. State of the Union speech, reiterated the country’s 8 percent growth target. That’s more optimistic than the International Monetary Fund’s forecast that the nation’s economy will expand 6.7 percent, the least in almost two decades.
The Shanghai Composite Index rose 6.1 percent yesterday, the most in four months, on speculation the government will increase a 4 trillion yuan ($585 billion) stimulus plan announced in November aimed at combating a slowdown that’s thrown at least 20 million workers out of work.
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China’s parliament convened today in its annual meeting in Beijing, where Premier Wen Jiabao reiterated the government’s pledge to “significantly increase” investment in 2009 to help counter the slowest growth in seven years. He didn’t announce any new stimulus spending.
“China can’t solve the world’s problems,” Rogers, the author of “A Bull in China: Investing Profitably In The World’s Greatest Market,” said in a phone interview today. “China is a wonderful and growing economy but it cannot pull the world out of the hole.”
Wen’s report to lawmakers, the equivalent of a U.S. State of the Union speech, reiterated the country’s 8 percent growth target. That’s more optimistic than the International Monetary Fund’s forecast that the nation’s economy will expand 6.7 percent, the least in almost two decades.
The Shanghai Composite Index rose 6.1 percent yesterday, the most in four months, on speculation the government will increase a 4 trillion yuan ($585 billion) stimulus plan announced in November aimed at combating a slowdown that’s thrown at least 20 million workers out of work.
Read More
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