Mon, Aug 29, 2005 - Page 10 News List

Economists tell Beijing to spend or risk slowdown

DANGEROUS Chinese researchers say a proactive fiscal policy is needed to avoid a slowdown, which can impact key indicators before the end of this year

AFP , SHANGHAI

Peking University's Justin Lin Yifu (林毅夫) said that mounting evidence of a slowdown at the margins was set to build and would impact key indicators such as the consumer price index before the end of this year.

Consumer price inflation grew at 1.8 percent last month, up slightly from the two previous months.

While industrial output grew at 16.1 percent last month the earnings season has painted a darker picture of falling margins and profitability.

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