Economics
China Will Respond Too Late to Avoid Recession, Citigroup Says
- Growth of 4% on “mendacious official data” likely, Buiter says
- Chinese slowdown will drag global growth to below 2%
What Does China's Volatility Mean for the World?
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China is sliding into recession and the leadership will not act quickly enough to avoid a major slowdown by implementing large-scale fiscal policies to stimulate demand, Citigroup Inc.’s top economist Willem Buiter said.
The only thing to stop a Chinese recession, which the former external member of the Bank of England defines as 4 percent growth on “the mendacious official data” for a year, is a consumption-oriented fiscal stimulus program funded by the central government and monetized by the People’s Bank of China, Buiter said.