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Thursday, November 24, 2016
Promoting economic growth under deleveraging
ANBOUND

With the economic slowdown and weaker will in business investments, the manufacturing industry in China is experiencing decline this year, and the annual growth is estimated to be only about 3%. Dependence on investment in various places is very high. Anbound Think Tank's research team believes that as the people, the government and the businesses are requested to deleverage, it would be difficult if the local governments still wish to continuously relying on property investments and infrastructural investments to promote the economy in 2017. By the end of 2015, the debts of the local governments had already increased to 16 trillion Renminbi, and the expanding debt scales further increase the local financial pressure. If local governments want to maintain the necessary infrastructure investment scales and support more entity enterprises to grow, it would be necessary to improve the private investment environment to attract more private investments.

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