The National People’s Congress concluded today with a pledge of policy support for the ailing economy from Premier Li. The next dose could come next week, when the PBOC has a chance to lower its MLF interest rate. More easing will be needed to achieve the “stability” that the government is aiming for. Soaring commodity prices are a drag both domestically and on consumers in key export markets. And the “dynamic clearing” approach to COVID management is facing its most severe test yet. More stringent restrictions may soon be needed. While we expect the government to publish figures showing that it has met its “around 5.5%” growth target, we now think that the economy may grow by only 2.5% this year.
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