China: Monetary and fiscal policy to become more pro-growth - BBVA
|Jinyue Dong, research economist at BBVA, point out that Chinese data released today showed the economy moderated further.
Key Quotes:
“September economic indicators, together with the Q3 GDP, were reported today. Among which, Q3 GDP growth slowed down to 6.5% y/y, compared with 6.7% y/y in the previous quarter and 6.6% of the market consensus. This suggests that Chinese economy further moderated amid the escalation of trade war with the US and domestic deleveraging.”
“We expect monetary and fiscal policy to become more pro-growth in the rest of the year to offset the external shock of the trade war, although the authorities remain vigilant on financial vulnerabilities including indebtedness in the corporate and shadow banking activities. Altogether, we maintain our 2018 growth projection at 6.5% y/y, compared with the official target rate at 6.5% and the Bloomberg consensus at 6.6%.”
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