16 Oct China’s “big” stimulus – will it work? And what does it mean for Australia?
Key Points
- A move towards more aggressive fiscal policy stimulus and property support measures should help drive a mild cyclical upswing in China’s economy.
- However, it’s doubtful it will be enough to reverse longer term structural problems facing China – around excess saving, demographics and growing state control.
- The Australian economy is less sensitive to China than it used to be, but a stimulus driven cyclical boost to the Chinese economy is still positive for the Australian economy, share market and the $A.