China: Growth has started to moderate – BNPP
Analysts at BNP Paribas note that China’s economic growth has started to moderate during the fall and this trend should continue in the coming quarters.
“Despite the slowdown, the central bank will have to continue to act to encourage the deleveraging of financial institutions and corporates and reduce financial instability risks. The authorities should maintain an expansionist fiscal policy in the short term.”
“The tightening of domestic credit conditions, restructuring measures in the industry and the correction in the property market will weigh on economic activity. Meanwhile, exports and private consumption should be supporting factors.”