Natixis Look For GDP Growth To Slow To Slow To 4.5% In ‘24

MNI (London) - Natixis write “looser economic policies are needed if China wants to maintain the 5% GDP growth rate, but there are constraints. On the fiscal side, the increased level of public debt, along with the slumping land sales revenue, has restricted its room for expansion. On the monetary side, there is plenty of room to stimulate thanks to the low inflationary environment, but the government will need to take into consideration of the internal debt expansion risk and external capital outflow risk.”

• “All in all, we expect both fiscal and monetary stimulus to soften the economic slowdown, but the GDP growth rate will continue to slow to 4.5% for 2024. If the structural headwinds persist, the Chinese economy could further slow to 4.2% in 2025.”