Case study: China targeting 8% growth in 2010 At the beginning of 2010 the Chinese government announced that it was targ

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Case study: China targeting 8% growth in 2010 At the beginning
of 2010 the Chinese government announced that it was targeting 8%
growth for the economy again, despite the global recession. The
target had been 8% for a number of years and the government had
always met it. About 9% growth is expected in 2010 thanks to huge
government fiscal and monetary stimulus measures. The Chinese
economy is the third largest in the world. Forecasts for economic
growth made 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 was not
guaranteed. China relies heavily on exports and so is vulnerable to
economic change elsewhere in the world. Questions Why is economic
growth often important to governments? (5 marks) 8% is relatively
fast economic growth. Why does China set such as high target? (5
marks) Why is China predicted to grow faster than many other
economies? (10 marks) What types of fiscal and monetary stimulus
might have been used to help the economy grow? (10 marks) Why does
the reliance on exports make Chinese growth vulnerable to changes
in other economies? (10 marks) Could the government make the
economy less reliant on exports? (10 marks)