China Downplays Big Stimulus in 2024, Testing Investor Patience
- Economy hits 2023 growth goal, posts severe deflation streak
- Premier says Beijing doesn’t want to accumulate long-term risk
Li Qiang at the World Economic Forum in Davos, on Jan. 16.
Photographer: Stefan Wermuth/BloombergChinese Premier Li Qiang gave his clearest signal yet that Beijing won’t resort to huge stimulus to revive growth amid the worst bout of deflation in decades. Another batch of troubling data is testing the patience of investors who worry Beijing is behind the curve.
Speaking to leaders at the World Economic Forum this week, Li trumpeted his nation’s ability to hit its roughly 5% growth target last year without flooding the economy with “massive stimulus.” While data Wednesday confirmed that economic goal, it also showed China recording its worst deflationary streak since the Asian Financial Crisis. Home prices fell last month by the most since 2015, underscoring the scale of the property downturn.