China’s efforts to stimulate the world’s second-largest economy are insufficient so far to achieve the government’s growth target of about 7.5 percent, according to a survey of analysts.
Fourteen of 22 respondents to a Bloomberg News survey this month said China will need to “somewhat” increase stimulus to meet the 2014 expansion goal, even after growth accelerated to that pace in the second quarter. The property-industry slump poses the biggest risk to growth in the second half, 16 economists said.
Any additional steps would follow a mini-stimulus of sped-up infrastructure investment, tax cuts and moves to free up more money for bank lending. Premier Li Keqiang, coping with a 16.4 percent plunge in new property construction in the first half of this year, is trying to meet the growth target he announced in March without resorting to broad-based stimulus that may exacerbate debt risks.
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Bloomberg News via CHINA US Focus http://ift.tt/1z3g8Bp
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