Good news for China’s economy ... and bad news, too: Beijing poised to increase money supply to boost growth but risks on rise
Loose monetary policies will be maintained to ensure appropriate growth this year, but the slowdown will go on for some time: government economist
The good news is China is ready to flood the economy with money, but the bad news is that the country’s slowdown is set to deepen, according to a senior government economist.
Zhu Baoliang, director of the economic forecast division at the State Information Centre, a think tank affiliated with China’s economic planning agency, said the central bank would maintain an accommodative monetary environment this year to ensure growth of more than 6.5 per cent and to avoid any form of financial, currency or debt crisis.
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But the monetary support was unlikely to generate strong growth as the effect of stimulus measures in driving growth was wearing out, he said.
“The 2016 growth target is between 6.5 and 7 per cent, but the actual growth rate will be closer to 6.5 per cent,” Zhu told the South China Morning Post in an exclusive interview.
“For 2017, China’s gross domestic product growth will move towards 6 per cent.”
