Predictions of the Chinese economy’s imminent recovery have proved overly optimistic so far this year but stabilising inflation and strong money growth signal that the slowdown might be nearing an end.
Chinese consumer price inflation dipped to 1.9 per cent in September from 2 per cent in August, showing the government has room to ease monetary policy.
At the weekend, China reported that in September exports rose 9.9 per cent, a stronger number than expected. While few analysts believe such strength will be sustainable if the European and US economies continue to struggle, the outlook is not as grim as initially feared.
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