Review of Financial and Economic Situation in 2009 and Outlook for 2010

Abstract

China's economy saw active changes with the implementation of a proactive fiscal policy and moderately loose monetary policy in 2009. As a whole, the national economy in the fourth quarter of 2008 reversed the trend of sharp decline in the growth rate. China has effectively fended off the major impact of the international financial crisis, stabilised confidence in all areas in a short time, and curbed the economic growth downtrend, but a sober assessment must be made that the business upturn trend is still neither stable, firm nor balanced, and economic development remains peppered with difficulties and challenges. Due to the deep and wide-ranging impact of the current international financial crisis, the current economic recovery has been mainly due to policy stimulus, and the economic basis of endogenous growth remains weak; a number of unstable factors have also appeared in economic operations. Keywords:China's economy; international financial crisis; proactive fiscal policy