China: Are we onto a new growth model, yet?
Date: 1 July
We recently upgraded our China growth forecasts on more resilient domestic demand conditions, compared to our prior expectations. This does not mean China is out of the woods yet – private investments, though not as bad as feared, remain tepid by historical standards, and consumption remains lacklustre despite more aggressive stimulus. Disinflationary pressures are also more pervasive than previously appreciated. We update our macro views on China and the spill overs that could have on the rest of the region.
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