China's Tepid Growth Expected to Lead to More Fiscal Stimulus

Dow Jones
09/16

0913 GMT - China's tepid GDP growth in August raises the probability of additional fiscal stimulus in 4Q, BNP Paribas economists say in a note. Based on the bank's estimates, real GDP growth last month was 4.3% on year. Policymakers may introduce new fiscal stimulus in October if 3Q growth slows to around 4.0% and if the economy fails to recover despite having support from fiscal measures. Economists say fresh stimulus measures may include more policy-based financial instruments, as fiscal policy is the most effective lever to counter short-term weak growth.

 

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