BEIJING: China’s economic growth is expected to strengthen on a sequential basis amid the latest stimulus package and with more incremental policies in the pipeline, translating into over 5 percent year-on-year growth in the fourth quarter, analysts and economists said on Sunday.
They said a long-awaited policy shift is unfolding for China’s economy and markets, as policymakers have pledged to strengthen countercyclical adjustment and step up fiscal policy support. This will include the largest debt resolution support in recent years, with a particular focus on addressing pressing challenges such as the prolonged housing downturn, debt issues and sluggish domestic demand.
Their comments came as data from the National Bureau of Statistics showed on Sunday that China’s consumer prices rose at a slower pace in September, while the decline in factory gate prices continued, pointing to pressures on the world’s second-largest economy and intensifying the need to roll out more incremental policies.
The country’s consumer price index, the main gauge of inflation, rose 0.4 percent year-on-year in September, compared with a 0.6 percent increase in August.
The producer price index, which gauges factory gate prices, dropped 2.8 percent last month, widening from a 1.8 percent fall in August, the NBS said. –The Daily Mail-China Daily news exchange item
