China’s lowest growth target in decades signals new era of caution
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
The Financial Times has written an article: ”China’s lowest growth target in decades signals new era of caution.”
It writes, ”China’s political leadership set a gloomy projection for growth in the world’s second-largest economy this weekend, despite the buzz of optimism following three years of closures during the coronavirus pandemic.”
The piece notes that policymakers at the annual meeting of China’s rubber-stamp parliament in Beijing set a growth target of just 5 per cent for 2023, the lowest in decades and trailing last year’s Covid-era figure of 5.5 per cent, which it failed to reach.
The FT says that, ”faced with a rolling property crisis, falling exports as global interest rates rise and the hangover from zero-Covid restrictions, policymakers are less concerned about a high target — a figure that has become closely watched after two decades of consistent outperformance — than with the threat of another disappointing reading.”Overall, quoting Tang Yao, associate professor of applied economics at Peking University, the FT portrays a government that was taking ”a very cautious approach in the face of a range of uncertainties.”
Meanwhile, Analysts see possible China RRR cut coming.
[/s2If]
Join Our Telegram Group
