China Economics

China Economics Focus

28 March, 2017

Out of the woods?

Evidence of a sharp turnaround in growth and policymakers’ success in preventing a destabilising slide in the renminbi have underpinned a dramatic shift in sentiment towards China. But there are good reasons to expect growth to slow again soon and for the renminbi to come back under pressure. Most important, there is no sign that the leadership is using this respite to push through needed structural reform. Prospects for the medium term therefore continue to worsen.

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