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MNI: China Slowdown Likely To Prompt Extra Fiscal Stimulus

MNI (Singapore)
MNI (Beijing)

Chinese policy advisors look ahead to next week's GDP growth data and likely upcoming policy measures.

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China’s economy is likely to grow by just over 5% in Q2, in line with the annual target of “around 5%” thanks mainly to robust exports, advisors and analysts told MNI, though they added that the first half slowdown and rising external uncertainty are likely to prompt an increase in government borrowing and fiscal stimulus.

Second-quarter GDP data to be released next Monday should show growth of 5.1%, following Q1’s stronger-than-expected 5.3%, said Zhang Yansheng, chief research fellow at the China Center for International Economic Exchange.

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China’s economy is likely to grow by just over 5% in Q2, in line with the annual target of “around 5%” thanks mainly to robust exports, advisors and analysts told MNI, though they added that the first half slowdown and rising external uncertainty are likely to prompt an increase in government borrowing and fiscal stimulus.

Second-quarter GDP data to be released next Monday should show growth of 5.1%, following Q1’s stronger-than-expected 5.3%, said Zhang Yansheng, chief research fellow at the China Center for International Economic Exchange.

Keep reading...Show less