Chinese fiscal stimulation effects in 2009, diamond-miner in 'difficult' period, Anglo Platinumin R1,4bn housing project

摘要

THE EFFECTS OF CHINESE FISCAL stimulation can be expected "sometime in 2009", says Rio Tinto CEO Tom Albanese on page 6 of this edition of Mining Weekly. Albanese describes the current global financial situation as a "pause for breath", and says that China is working with a set of macro-economic tools that most governments around the world would envy. He foresees 2009 Chinese gross-domestic-product growth at "a realistic" 8 percent to 9 percent. He points out that China has been in a position of tight monetary policy, and thus does not have to loosen monetary policy to stimulate the economy, but only to retreat from the tight policy. China has also been effective in reducing inflation, he adds. In 2010 and beyond, he expects as strong a demand for commodities, but with less supply than would have been the case had it not been for the global credit crunch. The bulk of Rio Tinto businesses are continuing to trade above the current low prices.