2023-06-19 10:07:00
Continued Chinese stimulus fails to create a strong boost to growth
Dubai – Al Arabiya.net
Posted on: June 19, 2023: 02:07 PM GST Last updated: June 19, 2023: 02:12 PM GST
Goldman Sachs cut its forecast for the growth of the Chinese economy this year to 5.4% from 6% previously forecast.
The bank believes that the continuous Chinese stimulus is unable to create a strong impetus for growth, pointing out that the stimulus packages directed at real estate and infrastructure are likely to be moderate given the declining population and high levels of debt.
Goldman Sachs stressed that following the same old stimulus strategy, which focuses on real estate and infrastructure to support economic recovery, would be inappropriate for the growth targeted by the Beijing government.
And a number of major banks cut their forecasts for China’s GDP growth for 2023, following May data published last week showed that the post-Covid-19 recovery in the world’s second-largest economy was facing bumps.
Sources told Archyde.com that China will introduce more stimulus support to its slowing economy this year, but concerns regarding debt and capital flight will keep measures aimed at supporting weak demand in the consumer and private sectors.
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