The dramatic slowdown of the mainland economy in the final quarter of last year calls for an acceleration of the already ambitious government spending scheme, analysts say.
Yet observers say even with the 4 trillion yuan (HK$4.54 trillion) stimulus package, the mainland will not achieve anything more than 'the mildest of recoveries' later this year.
'Now, things are simple and clear: to generate as much immediate demand as possible,' said Qu Hongbin, the chief China economist at HSBC Group. 'The only way to achieve this is to put into work more new projects as soon as possible. I think the message has hit home with Beijing.'
Mr Qu's remarks came yesterday after the National Bureau of Statistics revealed lower than expected year-on-year growth of 6.8 per cent.
The sub-par fourth-quarter expansion dragged full-year growth in gross domestic product down to 9 per cent, the slowest annual pace in seven years, snapping a five-year streak of double-digit growth.
And GDP growth is likely to slow further in the first quarter to less than 6 per cent, Barclays Capital Research has forecast.
Deflation also looks inevitable, with last month's change in the producer price index to minus 1.1 per cent, something not seen in years.
