BEIJING -- China's top economic planning agency earlier this week approved 25 urban rail projects that could be worth more than 800 billion yuan ($126.98 billion), along with other projects for roads, sewage treatment centers, waterways and ports.

The move is expected to stimulate China's slowing economy and boost the world's economic recovery.

The construction is part of the government's efforts to stabilize economic growth at a time when domestic demand remains weak and exports are suffering.

China's economy grew by 7.6 percent year on year in the second quarter, its slowest pace in three years, according to official data.

Analysts say the package will benefit the cement, iron, steel, construction, communications and equipment manufacturing sectors, as well as other basic industries.

But more importantly, the package will serve as an important step in reviving the global economy, which has been dragged into a recession by the international financial crisis.

The International Monetary Fund estimated that the world's economy will grow by only 3.5 percent this year, less than the 5.3- and 3.9-percent growth seen in 2010 and 2011, respectively.

China has become a global powerhouse after decades of development, with its massive economic growth benefiting developed and undeveloped countries alike.

China's demand for goods, services and technology has kept the factories of other countries humming, despite slower exports to the United States and Europe following the 2008 financial crisis.

Therefore, the economic situation in China has great global significance. A slowdown in China's economy is perceived as a great risk, especially for the Asia-Pacific region.

Saving China's economy will maintain the country's status as the "world's factory," allowing it to continue to provide the world with an abundance of cheap, high-quality products, as well as help the world recover from the global financial crisis.