![]() Policy advisers say the government will need to implement further stimulus should it wish to sustain an annual economic growth target of "around 5%" next year, which would match this year's goal.īut the People's Bank of China (PBOC) is constrained when it comes to implementing further monetary stimulus over concerns a widening interest rate differential with the West may weaken the currency and spur capital outflows. MORE SUPPORT NEEDEDĬhina's central bank governor on Tuesday said he was "confident that China will enjoy healthy and sustainable growth in 2024 and beyond," but urged structural reforms to reduce reliance on infrastructure and property for growth. Oil prices fell in early Asia following weaker-than-expected manufacturing activity in China, the world's largest energy consumer, while the offshore yuan also slipped. ![]() "Fiscal policy will be under the spotlight and take centre stage over the coming year and will be closely monitored by the market." "Today's PMI reading will further raise expectations towards policy support," said Zhou Hao, economist at Guotai Junan International. The patchy recovery has prompted many analysts to warn that China may decline into Japanese-style stagnation later this decade unless policymakers take steps to reorient the economy towards household consumption and market-allocation of resources. "But if that starts to change, policy support will need to be ramped up further to prevent the economy from backsliding." (which) may be overstating the extent of slowdown due to sentiment effects," Sheana Yue, China economist at Capital Economics, said in a note. "The hard data have held up better than the survey-based measures lately. The last time the indicator was negative for more than three consecutive months was in the six months to October 2019. ![]() The factory PMI has contracted for seven out of the past eight months - rising above the 50-point mark only in September.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |