Connect with us

Popular World News

China’s Economy Will Grow at 5.7% in 2020, Oxford Economics Says By Bloomberg

China’s Economy Will Grow at 5.7% in 2020, Oxford Economics Says By Bloomberg


China’s Economy Will Grow at 5.7% in 2020, Oxford Economics Says By Bloomberg


(Bloomberg) — China’s economic growth will likely slow to 5.7% in the last quarter of 2019 and remain broadly at that pace in 2020, even with increased stimulus from policy makers, according to Oxford Economics.

While the policy easing since late last year has helped moderate the slowdown, the impact has been small, according to a report by Louis Kuijs, chief Asia economist at Oxford Economics in Hong Kong. With the domestic economy slowing, conflict with the U.S. and weak global trade momentum, “more policy easing is needed to convincingly stabilize economic growth,” he said.

China’s fiscal stimulus package including about two trillion yuan ($279 billion) of tax cuts has had less of a multiplier effect on lifting growth at home and abroad, compared with previous easing which was mainly focused on infrastructure and housing spending, the report said. Demand for credit has stayed weak as the economy slows and the trade war escalates, but policy makers have remained reluctant to boost credit growth in a major way.

China’s economic growth softened to 6.2% in the second quarter, the lowest pace in almost three decades and close to the lower bound of the government’s full-year target of between 6% and 6.5%. Earliest indicators compiled by Bloomberg showed the economy is slowing further in August.

“We still expect growth to stabilize, but later than envisaged before and at a lower rate,” Kuijs said. “The key downside risk to this forecast is policy makers not stepping up the policy easing sufficiently.”

To contact Bloomberg News staff for this story: Yinan Zhao in Beijing at

To contact the editors responsible for this story: Jeffrey Black at, James Mayger, Jiyeun Lee

©2019 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!