Wednesday, April 16, 2014

China's weaker GDP

Most common reaction to China's weaker GDP data "appears to be relief that growth has not slowed further," Capital Economics writes, though "the bulk of the monthly data confirm the loss of momentum." Despite the weakening and downside risks, growth is still rapid, the firm notes, and "no evidence that China is at imminent risk of a 'hard landing.'" Capital Economics also says hopes of "substantial policy stimulus are also likely to be disappointed," and as long as the labor market stays healthy, it sees no policy loosening which could "undermine efforts to rein in wasteful borrowing and investment."