4 Mar 2016
China: All eyes on this weekend’s National People’s Congress – Deutsche Bank
Research Team at Deutsche Bank, suggests that given the growing concern about China’s slowdown, the National People’s Congress (NPC) starting on March 5th will be closely followed.
Key Quotes
“Our Chief China Economist Zhiwei Zhang expects the 13th Five Year Plan to be an important focus, but doesn’t expect too many surprises deviating from the framework laid out in the Guiding Principles published following the CPC’s 5th Plenary Session last October.
With regard to macroeconomic policies, Zhiwei notes that fiscal and monetary policy will likely remain supportive in 2016. The official fiscal deficit target is expected to be raised from 2.3% to slightly above 3.0% (of GDP) to remain accommodative of growth.
PBoC Governor Zhou is also expected to speak in the NPC press conference and his words will help further clarify the current monetary policy stance of ‘prudent with a slight easing bias’. Finally, policy messages should shed new light on the shifting balance of supply-side reforms and demand-side support going forward.”
Key Quotes
“Our Chief China Economist Zhiwei Zhang expects the 13th Five Year Plan to be an important focus, but doesn’t expect too many surprises deviating from the framework laid out in the Guiding Principles published following the CPC’s 5th Plenary Session last October.
With regard to macroeconomic policies, Zhiwei notes that fiscal and monetary policy will likely remain supportive in 2016. The official fiscal deficit target is expected to be raised from 2.3% to slightly above 3.0% (of GDP) to remain accommodative of growth.
PBoC Governor Zhou is also expected to speak in the NPC press conference and his words will help further clarify the current monetary policy stance of ‘prudent with a slight easing bias’. Finally, policy messages should shed new light on the shifting balance of supply-side reforms and demand-side support going forward.”