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MNI BRIEF: Stimulus Boost In H2 Will Be Limited - Zhu Min

MNI (BEIJING)
(MNI) Beijing

China will not implement large stimulus measures to support the economy in H2, as authorities remain concerned about high debt levels, according to Zhu Min, former deputy director at the IMF.

Speaking at the World Economic Forum in Tianjin, Zhu reiterated Premier Li Qiang’s recent comments the economy was on track to reach 5% GDP growth this year. Zhu said officials will focus policy support on structural transition towards green and high technology and also targeted measures to boost consumption. Policymakers must ensure household income grows more than GDP this year and make further efforts to boost health and social care, he said.

Zhu added China’s economy was undergoing structural transformation, with a move away from real estate towards new growth engines like manufacturing upgrades and electric vehicles.

Local chief economists recently told MNI the PBOC will likely introduce structural policies in H2, and refrain from further cuts to the loan prime rate. (See: MNI PBOC WATCH: PBOC to Hold Key Rates, But RRR Reduction Eyed - Bonds & Currency News | Market News)
MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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