China’s Zhou says economy has shown signs of strong and stable growth in 2017

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PBOC governor Zhou in a statement on the bank’s website today 14 Oct

  • economic indicators show “stabilized and stronger growth”
  • momentum expected to continue in H2
  • positive progress has been achieved in economic transformation
  • Imports and exports increased rapidly
  • fiscal income grew
  • prices have been steady

Strong and stable ? Let’s hope it’s a bit more effective/successful than UK PM May’s “strong and stable” leadership!

Zho made the comments after the G20 meeting in Washington over the past two days, the last under Germany’s 2017 presidency. He is also due to speak tomorrow (Sunday) on a global economy panel with Fed Chair Yellen, BOJ gov Kuroda and ECB VP Constancio.

Here’s part of Zhou’s statement:

On China’s economic developments, Governor Zhou highlighted that economic growth in China has been strengthening, as indicated by recent data. GDP grew by 6.9 percent in the first half of the year, and the momentum is expected to continue in the second half. Imports and exports grew strongly, with the current account surplus expected to shrink further. Fiscal revenues continued to grow, and prices remained stable. Moreover, deleveraging efforts have yielded early results, while economic growth continues to improve in terms of structure and quality, indicating that China has made strong progress in restructuring the economy.

China will continue to pursue a proactive fiscal policy and a prudent monetary policy. The government will continue to implement a comprehensive set of policy measures to address weaknesses in the economy, encourage deleveraging, and prevent potential risks, including those from shadow banking activities and housing market bubbles.

Full statement here and more from Bloomberg here
Nothing new in any of this but given this morning’s release of  September lending data showing a large surge one might reasonably question how  long credit-fuelled growth can/should be sustained even given the reforms being introduced.

Anyhow I have to head out now so I’ll wish you all a great/peaceful week-end and thank you again for your brilliant support and input.

              PBOC gov Zhou – Looking for economic momentum to continue in H2

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