Fiscal stimulus needed, baby bust continues

The initial policy response to the economy’s recent loss of momentum has been to cut interest rates. But on its own, this is unlikely to trigger a jump in household or corporate borrowing and spending. Officials will have to turn to fiscal policy to keep the recovery alive.

Fewer Chinese are getting married, which bodes poorly for the demographic outlook. Leaked government estimates based on maternity ward bookings suggest births could fall to just eight million this year, well below mainstream projections.