The Chinese government announced a $586bn (£374bn) economic stimulus package yesterday designed to boost the country's weakening economy and help to counter the looming global recession.

Beijing is to loosen credit conditions, cut taxes and undertake a giant infrastructure spending programme over the next two years that will amount to up to 7% of the country's gross domestic product. The scheme is not as big as the $700bn government bail-out in the US, but China's economy is only one quarter the size of North America's.

Investments will go ahead in 10 areas including housing, rural infrastructure and rebuilding after disasters such as the devastating earthquake in May. In the next three months alone, some 400bn yuan (£9.3bn) will be made, including 100bn yuan from current funds and another 20bn Yuan brought forward from next year's post-disaster reconstruction budget, the Chinese government said.

Independent, The Times