China Tells G20 That Economy is Sustainable

China’s economy is now more sustainable and domestic consumption is steadily rising, Chinese Central Bank Vice Governor Yi Gang told a G20 meeting of finance officials earlier this week.

Yi’s remarks came after China posted its slowest economic growth in 24 years in 2014, with a cooling housing market, slowing investment and recent underwhelming exports expected to weigh further on domestic demand this year.

To stoke growth and bank lending, China’s central bank last week reduced the amount of cash that banks have to hold as reserves for the first time in over two years. That was after it had unexpected cut interest rates in November.

 
Finance officials from the Group of 20 leading economies sketched an uncertain outlook for global growth on Tuesday and vowed to use monetary and fiscal policy if needed to stem any risk of stagnation.

Yi also was quoted on the central bank’s website on Wednesday as saying that the central bank was closely monitoring China’s property market and shadow banking sector, and increasing the transparency of the nation’s local government debt.

China’s shadow banking business, which includes investment trusts and bill acceptances, ballooned to 45 trillion yuan ($7.21 trillion) at the end of 2014, according to estimates by ratings agency Moody’s Investors Service.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.