Time to assess early effects of stimulus

The encouraging monthly figures of credit expansion, car sales and trade, all indicate that China's GDP growth in the first six months of 2009 may exceed expectations.

Chinese policymakers should not yet take a solid recovery for granted because there is more to the statistics than meets the eye. When assessing the initial results of the country's stimulus measures, they must combine the need for long-term reforms with the urgency of fighting the worst global recession in many decades.

As one of the most effective leading indicators of economic activity, the re-acceleration of credit growth in this country has practically confirmed the leading role that massive investment will continue to play in boosting economic growth.