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Beijing's Migrant Clear-Out May Hit Growth and Fuel Inflation

  • Campaign risks higher prices, lower potential growth: Report
  • Bloomberg Economics probes economic impact of city’s evictions
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Independent Economist Andy Xie discusses the economic impact of migrant workers in Beijing being evicted.(Source: Bloomberg)
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A campaign by the authorities in Beijing to clear out homes and businesses used by the poorest of the city’s eight million migrants from throughout China has set off a chain of events that could shrink the workforce, dent potential growth and generate inflation.

That’s the conclusion of research published Monday by Bloomberg Economics analysts Tom Orlik and Qian Wan in Beijing. It’s supported also by evidence gathered from the delivery drivers, shopkeepers and consumers whom the evictions directly affect.