April 23, 2009

Bank official in China sounds optimistic

Yi Gang, vice governor of the People's Bank of China, said the Chinese economy would pick up steam in the second quarter.

Yi said concern over deflation eased in March, while the Chinese stock market gained 35 percent, the People's Daily reported Thursday.

In addition, consumer confidence has improved and the real estate market in China has shown signs of stabilization, Yi said.

In contrast to the United States and Europe, bank lending increased in the first quarter.

Some economists are concerned that Chinese consumers have cut back on spending in the downturn, a worrisome development while exports decline due to economic problems around the world.

But Yi said the gross domestic product would pick up in the second quarter outpacing the first-quarter's 6.1 percent economic growth.