Property and infrastructure stimulus will probably be “targeted and moderate” given the shrinking population, elevated debt levels and President Xi Jinping’s call for curbing property speculation, they wrote. “Going down the same old route of using property and infrastructure to engineer a strong economic rebound would be inconsistent with the type of ‘high-quality growth’ that the leadership has been emphasizing repeatedly,” the report said.
Goldman Sachs Group became the latest bank to cut their forecasts for China’s economy, citing limited options to boost stimulus.
Analysts at Goldman lowered their estimates for China’s gross domestic product growth this year to 5.4% from 6% previously, according to a report dated Sunday. Any upcoming policy easing is unlikely to exceed those implemented in previous downturns including 2020, economists including Hui Shan said in the report.
