China’s Piecemeal Approach to Boost Growth Takes Hold

Key Takeaways

• China’s weaker-than-expected second quarter economic data has spurred the government to issue new measures and statements in support of boosting demand and the private sector.
• Policymakers have so far chosen not to pursue a major stimulus package and instead opted for a targeted approach to revitalize the economy, though some of the plans lack specifics.
• It remains unclear if current efforts will be enough to drive growth as China attempts to transition from an infrastructure and real estate-driven economy to one driven by consumption and private sector growth.