In 1999, it issued another RMB110 billion. Most of the funds were invested in infrastructure and technical renovation projects. In addition, the money was also used as the interest subsidies on bank loans. This also bolstered the economic recovery in the country. However, there is also evidence that the current recovery is not stable and the growth is fragile.
Historical data shows that the growth of the economy is mainly driven by investment.
Currently, however, major investment is from the government and private investment is still low. Whether the growth rate can be sustained or not will very much depend on low-income families' incomes further increasing. In the second half, it was estimated that this growth rate could hardly improve, as there is no room for further price rises of agricultural products, the agricultural restructuring takes time and there are not enough positions at companies for extra laborers from farmlands. Under such circumstances, the economy must spend much effort to consolidate its achievement in the first half of the year. However, for the whole year of 2000, the economic growth rate for China should be better than in 1999, as deflation will reduce, the world economies will continue to recover, the Chinese government will continue its active fiscal and monetary policies and reforms will proceed.