Fueled by government spending and a housing frenzy, China’s economic growth likely steadied at 6.7% in the third quarter, but slumping private investment, surging debt and the risk of a property correction are keeping the government and global investors on edge, Reuters reports. Wednesday’s data is expected to indicate an economy that is slowly stabilizing but increasingly dependent on government spending and a housing boom for growth, as exports remain stubbornly weak. Chinese leaders are trying to spur growth to create jobs, but are also facing pressure to push painful structural reforms such as cutting industrial overcapacity, raising the specter of more layoffs and debt defaults. Government pledges to reduce debt are also fraught with risk, as less leverage almost always means slower economic activity in the short run.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved