Wärtsilä Corporate Presentation

5 Chinese Economy Update . GDP has slowed to 8.9% during Q411 from 9.1% in Q311. • • CPI in Jan rose to 4.5%, higher than expected 4.2% due to Chinese New Year factor. This may deter policymaker from further loosening the monetary policy. Trade figures are weak in Jan. Imports sank 15.3% yoy in Jan, the worst since Nov. 2009, while exports fell 0.5% yoy. Imports slump during Jan is raising some concerns for domestic demand. Slight increase in business activities at the beginning of the year, as Jan PMI rose to 50.5 from 50.2 in Dec 2011. "There is downside pressure on our economy and elevated inflation at the same time" (quoted from Premier Wen, Jan.2, 2012). The country is facing problems of weakening external demand and rising costs for the companies. China will continue to fine tune the policy and further introduce measures to boost domestic consumption, and make sure the real economy gets sufficient investment for growth. Wärtsilä WÄRTSILÄ

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