China announces $260 billion worth infrastructure projects

China_HSR_indexChina recently ruled out introducing a stimulus to arrest the slowdown of the economy but instead announced USD 260 billion worth of infrastructure projects, including railway construction, to spur growth. China is to invest more than 1.6 trillion yuan (USD 260 billion) in infrastructure in an economy where growth is expected to slow and fiscal deficit increase, according to the work report submitted by Premier Li Keqiang to the legislature, the National People’s Congress (NPC) currently under session. China will invest over 800 billion yuan (USD 133 billion) in railway construction this year Li said in his report. Over 8,000 kilometres of railway track will be opened to traffic this year and construction on the 57 ongoing major water conservancy projects must be accelerated, Li said, adding that 27 more projects will start this year. China already has 16,000 km of high speed tracks, which amounts to 60 per cent world total, Premier Li said.

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