China has announced that it will boost public spending on infrastructure in an attempt to foster economic growth. The move comes amid reports that the Asian economic powerhouse is further losing steam this year.
The government in Beijing is planning to earmark an extra 120 billion yuan (14.4 billion euros, $19.25) this year aimed at improving China's infrastructure and transport system, the official China People's Daily newspaper reported on Monday.
Some 70 billion yuan were allocated for projects such as highways, waterways and docks, the newspaper said, while an additional 50 billion yuan were to go into improving minor roads.
Despite massive economic stimulus to the tune of about 250 billion euros in 2012, China's economy grew only by about 7.8 percent last year - the lowest growth rate since 1999.
The new spending comes as the Organization of Economic Cooperation and Development (OECD) anounced that its index of leading economic indicators suggested sluggish growth for the world's second-largest economy would continue this year.
uhe/pfd (dpa, AFP)