China’s economy grows as U.S deficit increases to $1.6 trillion this year

China is on track to surpass its key target of eight per cent economic growth in 2009, the Asian Development Bank said, boosting its outlook for the world’s number three economy by raising its growth forecast to 8.2 per cent in 2009 and 8.9 per cent in 2010.

The Chinese government efforts to jump-start the export driven economy in the midst of the worldwide downturn had help.

The US economy lost 263,000 jobs in September, far more than expected. The unemployment rate rose to 9.8 percent, the government reported on Friday, dimming prospects of any meaningful job growth by the end of the year.

The economy has been bleeding jobs every month, without interruption, for nearly two years.More than 15 million people in the United States are now unemployed, and more are working part-time jobs for less pay, or have given up looking for work altogether.

Some 52 percent of unemployed people have exhausted state jobless benefits, and some are reaching the end of the makeshift strands of emergency extensions.

The House of Representatives has passed a bill that would provide another 13 weeks of benefits, but a similar bill has stalled in the Senate over questions of whether it should only cover people in the hardest-hit states.With 15 million people unemployed there is no indication that the economy is recovering.

The U.S. budget deficit is projected to increase to $1.6 trillion this year, equivalent to 11.2 percent of the nation’s economy, according to the nonpartisan Congressional Budget Office.

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