Joel Mathis
Doldrums continue to plague China's post-pandemic economy. Now the country's leaders are firing up a new round of plans to jump-start growth. It just might not be enough.
Amid concerns of a "prolonged structural slowdown," China's central bank this week unveiled the "biggest stimulus" of the post-Covid era, Reuters said. The "broader-than-expected" package includes mortgage interest rate cuts and other measures designed to pull the country's economy out of a "deflationary funk." That's the good news. The not-so-good news? "The move probably comes a bit too late, but it is better late than never," said Natixis' Gary Ng to Reuters.
It's a "massive adrenaline shot" for an economy beset by a "property market blowout, consumer price weakness and rising global trade tensions," said Bloomberg. But the "sweeping" effort doesn't meet demands to "fundamentally reconfigure" the economy away from manufacturing exports and toward domestic consumption. The missing piece? "A coherent strategy to get China's 1.4 billion people to ramp up spending," Bloomberg said.
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