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CASE 1At the beginning of 2010 the Chinese government announced that it was targeting 8% growthfor the economy again, despite the global recession. The target had been 8% for a number ofyears and the government had always met it.About 9% growth is expected in 2010 thanks to huge government fiscal and monetary stimulusmeasures. The Chinese economy is the third largest in the world. Forecasts for economic growthmade by the International Monetary Fund for 2010 included China 9.2%, UK 0.9%, Japan 1.7%,US 1.5% and India 6.4%. However government officials in China recognized that growth wasnot guaranteed. China relies heavily on exports and so is vulnerable to economic changeelsewhere in the world.Questions1. Why is economic growth often important to governments?2. 8% is relatively fast economic growth. Why does China set such as high target?