China expects slower growth
December 16, 2019
China lowered their expected economic growth from 6%-6,5% to 6% in 2020. Chinese leaders are trying to support growth to limit job losses that could affect social stability but are facing pressure to tackle debt risks caused by pump-priming policies. The government aims to boost infrastructure investment by allowing local governments to issue more special...
China lowered their expected economic growth from 6%-6,5% to 6% in 2020. Chinese leaders are trying to support growth to limit job losses that could affect social stability but are facing pressure to tackle debt risks caused by pump-priming policies. The government aims to boost infrastructure investment by allowing local governments to issue more special bonds next year, but there is less room for tax cuts. Beijing has unveiled a raft of pro-growth measures this year, cutting taxes and fees and letting localities issue 2.15 trillion yuan in special bonds, alongside cuts in reserve requirements and lending rates to boost credit.