Bank proposes to suspend new stimulus package

The World Bank said in its latest quarterly report that it was too early to say that the recovery was premature, and that it would be unnecessary and perhaps inappropriate for the Chinese government to introduce more fiscal stimulus in 2009.　　Chinese consumption is likely to slow, pushing wages and employment figures down to prevent the global economy from deteriorating, and the government should reserve room for a new fiscal plan for 2010. The bank believes the massive credit expansion of the first 5 months will support economic growth in the coming quarter.　　Compared with the previous three months, China's overall economic growth is expected to improve, but this has little impact on the 2010 situation. In addition, the bank believes it will be a while before the renminbi becomes the main reserve currency. According to international experience, this requires several preconditions, including open capital markets, deep, liquid foreign exchange markets, developed bond markets and flexible exchange rates, and it will take time for China to meet these conditions. Economic Observer