Goldman Sachs Asia-Pacific economist Andrew Tilton sees only a modest decline in China’s economic growth during the next year.
“Chinese policy combines broad support and targeted tightening to address [the] highest-profile risks,” Tilton wrote in a recent client presentation. Monetary policy is “continuing to shift towards growth support (lower rates/reserve requirements, flexibility on shadow banking regulation, administrative efforts to boost spending), reflecting concerns over tighter domestic credit and the trade outlook.”
Tilton adds that the yuan has “re-stabilized at a weaker level with minimal outflows,” although he cautions that the “outcome on US-China trade and the extent of bond-market related inflows will be important drivers going forward.” He believes that China’s GDP growth will hold around 6%, adding, “Policymakers have shaved growth targets only slightly, despite signs of slowing potential.”
Capital outflows are not a concern, Tilton believes, because Chinese capital controls remain effective.
Trump, China, and Russia all rejected this as rubbish report. Time to investigate who is behind this, like the suspicious packages.
Trump, China, and Russia all rejected this as rubbish report. Time to investigate who is behind this, like the suspicious packages.