Economic stimulus to continue
Print Edition
CHINA will be able to maintain stable economic growth this year but using monetary and fiscal stimulus could hurt the government’s efforts in rebalancing the economy, Moody’s Investors Service said in a report yesterday.
Moody’s said China’s economic growth of 6.9 percent in 2015 was due to monetary and fiscal stimulus, which halted a sharper slowdown from 7.3 percent in 2014.
Moody’s said it expects the government to continue using policy support to pursue growth targets in 2016.
Measures will include spending on social and infrastructure projects that would ease the fall in property investment, the report said. Credit growth is set to rise at least as fast as economic growth in the near term.
But the report said: “It is becoming increasingly difficult for the government to achieve its growth target while steering the economy toward a more balanced structure.”
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