Chinese PM says impact of financial crisis on China "worse than expected"

Channel News Asia
Chinese PM says impact of financial crisis on China "worse than expected"
Posted: 13 November 2008 1242 hrs

BEIJING: China's Premier Wen Jiabao said the effect of the global financial meltdown on the country was "worse than expected," state media said Thursday, in a sign of growing concern at the impact of the crisis.

Wen was quoted as making the assessment by the director of the National Bureau of Statistics Ma Jiantang when he briefed his staff on Tuesday, according to the website of the bureau's newspaper China Information News.

"The impact of the global financial crisis on the Chinese economy is much worse than many had expected," Ma said according to the website, passing on remarks made by Wen.

China initially said the global financial crisis would not cause too much harm to its economy, but in recent days the signals from Beijing have changed markedly.

Wen's comment comes after the Chinese government unveiled a four trillion yuan (US$586 billion) economic stimulus plan on Sunday aimed at boosting domestic consumer demand in the face of flagging exports.

- AFP/yb