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MNI INTERVIEW: China’s Post-Covid Rebound Won’t Last - Pettis

MNI (BEIJING)
(MNI) Beijing

Growth will slow to 2-3% as the old development model falters under high debt, said Beijing University’s Michael Pettis.

China’s growth will slow to 2-3% despite hopes for a robust rebound once Covid restrictions are relaxed, as the nation’s new leadership confront a legacy of too much debt and a bumpy transition to consumption-led growth, Beijing University professor Michael Pettis told MNI.

The twilight of China’s debt-fuelled development mode will force China’s new leaders to confront structural changes that have been a long time coming and raise the fiscal burden on local governments to finance Beijing’s push to boost consumption, he said in an interview.

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China’s growth will slow to 2-3% despite hopes for a robust rebound once Covid restrictions are relaxed, as the nation’s new leadership confront a legacy of too much debt and a bumpy transition to consumption-led growth, Beijing University professor Michael Pettis told MNI.

The twilight of China’s debt-fuelled development mode will force China’s new leaders to confront structural changes that have been a long time coming and raise the fiscal burden on local governments to finance Beijing’s push to boost consumption, he said in an interview.

Keep reading...Show less