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Fujian government investment spurs economic recovery

By Hu Meidong and Liu Xintian (China Daily Fujian Bureau)
Updated: 2009-08-20 17:24

Fujian’s GDP increased from 7.4% in the first quarter of this year to 8.5% in the first half of this year, according to a report released by the Fujian Statistic Bureau August 18. Industry, investment and consumption fields steadily developed, after the central government’s adjustment in fiscal policy took effect on November 4, 2008, as well as people’s livelihood, the report also showed.

The report indicates Fujian enlarged its government public investment, with capital source in the first half of 2009 including 30.084 billion yuan in budgetary funds (an increase of 101.7%) and investment in newly-commenced projects (an increase of 77.8%).

Government investment has become a major force to prevent economic downturn in the province. Spurred by government investment, Fujian’s fix asset investment and non-government investment has experienced an accelerated growth.

At the same time, tax cuts have contributed to economic recovery in many fields while fiscal subsidies have stimulated good sales in the market.