The recent flurry of policy announcements amounts to less than meets the eye. The rate cuts are too small to revive loan demand and the new commitments for direct credit support total just 0.8% of GDP. That’s a fraction of the 6.9% of GDP increase in new lending during the last easing cycle in 2020 and doesn’t change our view that China’s economy will continue to struggle in the coming months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services