Friday, December 26, 2008

Drastic Slowdown in China's Output Due to De-Stocking, Yi Says

The drastic slowdown in the growth of China's industrial output is mainly due to de-stocking by companies who ran up inventories earlier this year, central bank Vice Governor Yi Gang said today.

It will take companies until the end of the second quarter at the latest to get rid of their inventories, Yi told a conference in Beijing. Growth in industrial output, transport and power generation will then return to its "normal" rate, he said.

Yi said China's economy could expand by around 8 percent in 2009.

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