2 Steps China Must Take to Avoid a Deflation Quagmire
Tuesday, 1 October 2024, 09:00
Key Insights on China's Economic Landscape
Economy and markets are currently at a pivotal juncture as Chinese markets respond to government stimulus. Despite recent boosts, Yale economist Stephen Roach points out that only one out of three necessary steps to avoid a deflationary trap has been achieved.
The Missing Components
- Fiscal Support: Essential for sustaining market growth.
- Structural Reform: Necessary to address underlying economic vulnerabilities.
If China fails to implement these strategies, its economic struggles will likely continue.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.