Chinese officials vowed to bolster flagging growth as a real estate downturn hampers domestic consumption.
Though Beijing has largely resisted economists’ calls for fiscal stimulus, the pressure has piled on policymakers, who signaled today they will move to stabilize the property sector, boost employment, and support household spending, which ING’s China chief economist noted was “a bit of a shift in tone.”
While exports remain buoyant, China is nevertheless likely to miss its official growth target, already the lowest in decades.
Household spending, which remains far below that of high-income nations as a percentage of GDP, is being hampered by an estimated $327 billion in bad consumer debt and some analysts fear the country could tip into a deflationary spiral.
