Three per cent: China’s new horizon for growth
- The slowdown of the Chinese economy has been a matter for great discussion by market participants and policymakers alike over the past few years
- It is important to differentiate between the forces that affect Chinese growth: fluctuations in activity that are relatively short-term, such as those emanating from monetary and fiscal policy changes or external conditions, or those that are more structural in nature; the concept of ‘potential GDP’ captures these structural forces…
