Guonan Ma: Are financial conditions in China too lax or too stringent?

Are financial conditions in China too lax or too stringent?
– could tighter financial conditions be another key factor contributing to China’s slowing economic growth? Probably.
by Guonan Ma on 5th August 2014


The pronounced slowdown in China’s GDP growth in recent years has raised the important question of what might be its principal causes. The usual suspects are many and might include rebalancing pains associated with China’s domestic and external imbalances, less favourable demographics resulting in a stagnant labour force, fewer low-hanging fruits in market liberalisation, a less-accommodating global economy that no longer serves as a ready outlet for China’s surplus savings, and even the ongoing anti-corruption campaign that might have slowed government outlays and hit sales of luxury goods.

Read more at Bruegel

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