China’s Extraordinary Stimulus Package

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By Trey Thoelcke Published
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China has decided that what its economy needs is an extraordinary stimulus package. As its growth in gross domestic product drops toward what is likely to be 7% and its PMI data shows contraction within that sector, experts have questioned whether bank policy alone can right problems that are caused mostly by the wider economic world.

The National Development and Reform Commission reported that it will give financial support to dozens of infrastructure programs. While these will not make up for export shortfalls, they will improve spending within China, and that may make up for what is likely to be a pullback in consumer spending caused, ironically, by worry about the overall economy of the People’s Republic.

According to CNBC, analysts project the estimated total of the actions will be more than 1 trillion yuan ($157 billion), or 2.1% of China’s economy. And:

The plans to build highways, ports and airport runways are among the most ambitious in China this year and signal growing intent to bolster economic growth as the country approaches a once-a-decade leadership transition.

Douglas A. McIntyre

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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