China’s Deepening Slowdown Tests Xi’s Tolerance for Growth Miss
- A slew of major indicators undershot expectations in August
- Goldman Sachs, Citigroup, Morgan Stanley lower forecasts
This article is for subscribers only.
Back in January, Premier Li Qiang trumpeted China’s success in exceeding its 2023 growth goal without resorting to “massive stimulus.” Repeating the same feat this year now looks less likely.
Pressure is growing on Chinese authorities to quickly ramp up fiscal and monetary stimulus to hit this year’s growth target of around 5%. Data published Saturday showed industrial output marking its longest slowing streak since 2021 last month, while consumption and investment weakened more than expected.