Quake reconstruction to boost China growth
Friday, 20 June 2008
Geoff Dyer in Beijing and
Tom Mitchell in Hong Kong
FT Syndication Service
Last month's devastating Sichuan earthquake will boost China's economic growth, thanks to the billions due to be poured into reconstruction, according to a government think-tank.
The State Information Centre, a research group that is part of the government's main planning body, said last Wednesday that the reconstruction would add 0.3 percentage points to China's growth rate this year.
The research confirms private sector estimates that economic losses from the earthquake are likely to be outstripped by investment in new construction and infrastructure.
The earthquake caused enormous casualties - the death toll is expected to exceed 90,000 - and left millions homeless. However, it has had little direct impact on the country's industrial infrastructure.
According to the State Information Centre, direct losses from the earthquake will reach Rmb400bn-Rmb500bn ($58bn-$73bn, euro37bn-euro47bn,
Tom Mitchell in Hong Kong
FT Syndication Service
Last month's devastating Sichuan earthquake will boost China's economic growth, thanks to the billions due to be poured into reconstruction, according to a government think-tank.
The State Information Centre, a research group that is part of the government's main planning body, said last Wednesday that the reconstruction would add 0.3 percentage points to China's growth rate this year.
The research confirms private sector estimates that economic losses from the earthquake are likely to be outstripped by investment in new construction and infrastructure.
The earthquake caused enormous casualties - the death toll is expected to exceed 90,000 - and left millions homeless. However, it has had little direct impact on the country's industrial infrastructure.
According to the State Information Centre, direct losses from the earthquake will reach Rmb400bn-Rmb500bn ($58bn-$73bn, euro37bn-euro47bn,