China unveils major stimulus to boost growth
China has launched its largest economic stimulus package since September 2024, aimed at supporting economic growth of around 4.5% to 5%, following a slowdown in growth last quarter. The package focuses on supporting the mortgage sector and expanding central bank lending programs, with limited efforts to spark a broad economic rebound, reflecting the government's desire to maintain stability without significant fiscal expansion. The measures include support for the real estate sector and incentives for infrastructure investments, with expectations that domestic demand will remain weak and growth will stay at the minimum required level. There are warnings, however, that these policies will not fully address structural imbalances such as weak domestic demand and China’s heavy reliance on exports.
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