Garcia-Herrero Discusses Trade War Impact on China's Economy
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IEMS Faculty Associate and Chief Economist for Asia Pacific at NATIXIS, Alicia Garcia-Herrero was featured in SCMP discussing the trade war impact on China's economy. Price increases of goods sold by China’s factories slowed for the fourth straight month in October as the world’s second largest economy faces lower demand for industrial materials amid cooling manufacturing activity exacerbated by a trade war with the US.
Garcia-Herrero expects the People’s Bank of China will continue to steadily pump money into the lending market. “China will continue to use monetary conditions to support growth beyond the 250 basis point RRR cuts this year and additional targeted lending,” she said. "What’s more, as a result of poor GDP data and weaker-than-expected purchasing managers’ index (PMI) figures for October, China is likely to introduce additional fiscal stimulus to boost growth."
Read the full article on SCMP here.
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