Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

China Faces Slowdown With Limits on Stimulus, Wu Xiaoling Says

PBOC Former Deputy Governor Wu Xiaoling
Wu Xiaoling, former deputy governor of the People's Bank of China. Photographer: Qilai Shen/Bloomberg

Sept. 19 (Bloomberg) -- China’s economy is highly likely to slow next year and efforts to spur growth will be constrained by inflation and government debt burdens, said Wu Xiaoling, a former deputy central bank governor.

The government shouldn’t expand monetary or fiscal stimulus because of price pressures and central and local-government debt, Wu said in comments published today by the Financial News, the central bank’s newspaper. Wu is vice director of the finance and economy committee of the National People’s Congress.

The world’s biggest exporting nation faces weakening global demand because of the European debt crisis and U.S. unemployment. China’s officials are still grappling with the side-effects of 2008 and 2009 stimulus measures, including elevated inflation and the risk of bad loans for banks.

Gross domestic product expanded 9.5 percent in the second quarter of this year.

Next year’s slowdown will be caused by factors including reduced overseas demand, measures to alter the structure of the economy and to cool the property market, and adjustments to infrastructure investment, the article quoted Wu as saying.

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst in Hong Kong at ppanckhurst@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.