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3 Apr 2014
Chinese Government announce measures to support economy - Danske Bank
FXStreet (Barcelona) - Kasper Kirkegaard, Chief Analyst at Danske Bank notes that in China, the government has announced a package of measures to support the economy following evidence in recent months that the economy continues to decelerate.
Key Quotes
“The stimulus package, which is of limited size, includes accelerated railway spending and tax relief to small companies. This is in many ways a déjà vu to spring last year when China also implemented a stimuli package that helped temporarily stabilise growth going into H2.”
“This latest stimuli underline that the Chinese authorities continue to view fiscal policy as the preferred tool to support growth following the problems that came with very strong credit growth following the 2008 recession. Asian markets have reacted slightly positively although a Chinese stimuli package was probably already discounted.”
Key Quotes
“The stimulus package, which is of limited size, includes accelerated railway spending and tax relief to small companies. This is in many ways a déjà vu to spring last year when China also implemented a stimuli package that helped temporarily stabilise growth going into H2.”
“This latest stimuli underline that the Chinese authorities continue to view fiscal policy as the preferred tool to support growth following the problems that came with very strong credit growth following the 2008 recession. Asian markets have reacted slightly positively although a Chinese stimuli package was probably already discounted.”