Economics
China's Pollution Curbs May Start Slowing Growth Within Months
- Economist says leaders will likely tolerate growth below 6.5%
- Authorities have intensified anti-pollution drive this year
Passengers wearing face masks walk through a subway station in Beijing, China, on Jan. 6.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s drive to cut pollution could reduce economic growth by 0.25 percentage point in the next six months while boosting factory inflation, according to Societe Generale SA.
Production cuts to curb emissions and tougher nationwide environmental inspections will also support the profits of large industrial companies as producer prices rise, said Yao Wei, chief China economist at SocGen in Paris. She said the campaign will give a "notable supply shock" to the economy.