China’s slowing economy will be at the forefront as parliament convenes for its annual meeting this week, with a weekend interest rate cut a reminder of the challenge of balancing painful restructuring with combating the onset of deflation.
Senior leaders at the National People’s Congress, which opens on Thursday, will send an unambiguous signal about the extent of the slowdown when they cut this year’s GDP growth target to around 7 percent, which would be the lowest growth in a quarter of a century.
“The focus will be on state-owned enterprise reforms, price reforms and fiscal reforms,” said Wang Jun, a senior economist at the China Center for International Economic Exchanges, a well-connected think-tank in Beijing.
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.