China econ­omy sta­bil­is­ing: re­port

Pakistan Observer - - ECONOMY WATCH -

BEI­JING—A slew of of­fi­cial data points to the sta­bi­liz­ing Chi­nese econ­omy, and slower growth could prompt ad­di­tional pol­icy sup­port, said a re­port re­leased by Swiss bank UBS.

Most head­line num­bers for the Chi­nese econ­omy re­leased dur­ing the past week were in line with ex­pec­ta­tions. While fixed-as­set in­vest­ment dis­ap­pointed, im­ports sur­prised on the up­side, and firmer do­mes­tic de­mand saw in­dus­trial out­put growth sta­bi­lize, ac­cord­ing to the re­port.

On the down­side, man­u­fac­tur­ing and pri­vate in­vest­ment weak­ened fur­ther in May, UBS noted, adding that pro-growth poli­cies may in­ten­sify again once growth fur­ther slows

The bank ex­pects the still strong prop­erty sec­tor and the un­fold­ing ef­fects of ear­lier or on­go­ing eas­ing mea­sures to help strengthen se­quen­tial gross do­mes­tic prod­uct (GDP) mo­men­tum in the sec­ond quar­ter.

“We ex­pect growth in the sec­ond quar­ter to be firmer than the first on a se­quen­tial ba­sis, but not much im­proved on a yearon-year ba­sis, and to lose steam later in the year,” the re­port said.

The bank saw macro poli­cies “stay­ing on hold” un­til the fourth quar­ter, when slower growth may prompt ad­di­tional sup­port again, and main­tain its full year GDP growth fore­cast of 6.6 per­cent. China’s GDP ex­panded 6.7 per­cent year on year in the first quar­ter, the slow­est growth since the global fi­nan­cial cri­sis in early 2009.—Xin­hua

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