chinese economy improving amid progrowth measures
Last Updated : GMT 16:22:18
Arab Today, arab today
Arab Today, arab today

Chinese economy improving amid pro-growth measures

Arab Today, arab today

Arab Today, arab today Chinese economy improving amid pro-growth measures

Chinese economy
Beijing - XINHUA

The Chinese economy is showing signs of warming as observers eagerly await the release of first-quarter GDP data next week.

With fiscal and credit policy support beginning to take effect, the official purchasing managers' index for the manufacturing sector came in at 50.2 in March, up from February's 49 to its highest level since August. According to the data released on Friday, the index for non-manufacturing business activity stood at 53.8, up from 52.7 in February, reversing a downward trend since December.

A reading above 50 indicates expansion, while a reading below 50 represents contraction.

Meanwhile, consumer inflation in February was 2.3 percent, up from January's 1.8 percent.

The improvement came after the government took a number of pro-growth measures.

China has cut benchmark interest rates and banks' reserve requirement ratio (RRR) multiple times since 2014, and has been driven to make more such moves by the economy logging its lowest annual expansion in a quarter of a century at 6.9 percent in 2015.

In early March, the central bank announced another RRR cut of 0.5 percentage points for commercial banks, the first such cut this year.

At a press briefing last month, a central bank spokesperson described its monetary policies as "prudent with a slight easing bias."

According to the government work report unveiled last month, China is aiming for a deficit-to-GDP ratio of 3 percent for this year, up from 2.3 percent in 2015. The government deficit for 2016 is projected to be 2.18 trillion yuan (335 billion U.S. dollars), a rise of 560 billion yuan over last year and giving the government more money to spend.

Continued strong home sales and more efforts to destock in third- and fourth-tier cities have also helped, boosting demand for related industries in both the manufacturing and services sectors.

China's real estate investment rose 3 percent in the first two months of 2016 year on year, up from an increase of just 1 percent in the whole of 2015, official data showed.

Analysts are divided about what policy direction China could and should take from here.

"Considering that current conditions remain uncertain, the government needs to continue with moderate stimulus measures to reinforce market confidence," said Caixin chief economist He Fan.

Further monetary and fiscal policy expansion can help stabilize property investment and support urbanization-related infrastructure spending, said an HSBC report.

An economic research team with the Chinese Academy of Social Sciences also suggested that the government cut tax to reduce corporate costs and maintain an appropriate growth in money supply to reduce financing costs for the real economy.

But others expect the government to take a break from policy easing.

"Given the upcoming stabilization of real economic activity, ongoing rebound in property sales and prices, and the recent jump in headline consumer price index, we think policy easing momentum has likely peaked in the near term," said UBS chief China economist Wang Tao.

"As such, we no longer expect a benchmark interest rate cut this year," Wang said.

China is due to release the first-quarter GDP data on April 15.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chinese economy improving amid progrowth measures chinese economy improving amid progrowth measures

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

chinese economy improving amid progrowth measures chinese economy improving amid progrowth measures

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday