All data are based on gross floor area unless otherwise specified. !"#$%&'()*+, !"#$ Overview China’s economic outlook remains relatively optimistic in !"#$%&' !"#$%&'()*+,-. comparison with current economic conditions throughout the !" !"#$%&'()*+,-./* rest of the globe. That being said, the negative effects of waning !" !"#!$%&'#()*+,-./012 growth in China’s export and property sectors will present !"#$ !"#$%&'()*+,-. serious problems for China’s overall economy in the short-term !"#$%&'()*+,-./0123456) and mid-term; solutions to the present problems in the domestic economy will require structural changes to be made not only to the domestic economy but also to the way China’s economy !"# !!"#$%& !"#$%&' functions within the context of the global economy. !"#$%&'()*+2008 !" !"# !" !" !"#$%&'()*+,-) The Central Bank of China’s recent adjustment to domestic !"#$%&' ary policy has closely followed adjustments made by major central banks in Europe and North America. China’s !"# !" 4 !"#$%&' ! central bank rapidly lowered interest rates and deposit reserve !"#$%&'()*'+,- !"#$ ratios during the end of 2008 and has continued to increase the !"#$ !"#$%&'()*+,-./+0 range in flexibility of state-owned bank lending. !"#$ In terms of fiscal policy, the Chinese central government’s massive fiscal initiative intends mit RMB4 trillion to a variety of central and provincial public works projects over the course of a two year period. It is hoped that this fiscal spending will be able to “crowd-in” private investment and help to preserve a steady rate of economic growth in 2009 and 2010. 01 Table 1: Economic indicators for Beijing Q1 2009 : 2009 1 !"#$% Indicator Period Unit Amount Change year-on-year (%) !"