China reported the first since 2002, deflation.

China's consumer price index fell in February 2009 to 1,6 percent, informs AFP referring to the National Bureau of Statistics of China. This is the first deflation recorded in the country since December 2002. During the first two months of this year, consumer prices in the country decreased by 0.3 percent over the same period in 2008.
Producer prices in February declined by 4.5 percent. According to the Chinese government, reducing the consumer price index in the first quarter of 2009 amount to one percent.
5 March 2009, Prime Minister Wen Jiabao of China said that the country's economy in 2009 will grow by eight per cent despite the global financial and economic crisis. But he noted that vosmiprotsentny growth is the primary goal of the Chinese government. Nevertheless, in conditions of deflation as the strong economic growth will be difficult to achieve. Deflation is usually considered a sign of recession.
Growth of China's economy in 2008 began to slow down. At the end of fourth quarter GDP grew by only 6.8 per cent, while for the year - a nine per cent. For comparison, in 2007 the economy grew by 13 percent. According to some forecasts, in the first quarter of 2009 GDP to grow by 3-5 per cent.
In order to maintain high growth rates the country's GDP, the Chinese government on Nov. 9, 2008 announced a plan to stimulate the economy, the financing of which was scheduled to 4 trillion yuan (585 billion dollars). The present paper involves the allocation of funds to overcome the effects of global crisis and increased domestic consumption, as well as the implementation of health programs, building infrastructure and creating more jobs.