While #China’s economy slowed down in 2019 as a result of slowdown in both internal and external demand, the downward pressure is expected to be released by marginal improvement in cyclical factors, according to Wu Ge in a recent interview:
mp.weixin.qq.com/s/LvkNYDXB00lD… #economics
Global economic performance is likely to be improved resulting from easy monetary and financial condition and proactive fiscal policies, as well as potential increase in external demand brought by improvement in China-US #trade relations.
Increase in the flexibility of RMB exchange rate mechanism is also conductive to restoring external demand. Chinese RMB value against USD once dropped below 7, indicating an increase in authority’s tolerance for exchange rate fluctuations.
Counter-cyclical regulation will still be applied when necessary. The recovery of infrastructure invt in 2019 were relatively weak despite authority’s repeated emphasis on counter-cyclical adjustment.
Structural constraints are likely to continue to weigh heavily on economic growth, and supply-side structural reform will still be the theme of macroeconomic regulation. #SOEs reform, debt reduction efforts and construction of city cluster may accelerate.
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