Yale University senior fellow Stephen Roach spoke in an interview, saying any short-term stimulus package won’t solve China’s longer term economic malaise.
- “I think there is a tradeoff here between the cyclical stimulus majors that are going to be taken, and the ongoing longer-term issues that China has with respect to growth”
China is facing problems from:
- ongoing conflict with the US
- an aging demographic issue
- productivity problems
- And the country’s direction is “being driven more by ideology than markets right now”
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Yesterday we got the long-awaited rate cut out of China:
Meanwhile analysts are piling onto the GDP forecast cut wagon: