China’s economy demonstrates positive signs
On Monday, Li Keqiang, China’s prime minister informed that for the first few months the country’s economy has shown upbeat signs, though still facing powerful headwind, while the upcoming supply-side structural reform is urgently required to stabilize growth.
At a recent meeting with several provincial governors, the prime minister stressed that local authorities require cutting red tape and implementing tax breaks to help small businesses.
Li Keqiang added that local authorities should be concerned with reducing overcapacity in the coal and steel sectors. They need to make use of debt-to-equity swaps to assist companies in lowering their debt.
Furthermore, the prime minister added that there needs to be abundant liquidity in the market, while the financial sector requires serving the real economy better.
In 2015, China’s economic growth tumbled to 6.9%, the weakest outcome in a quarter century. Meanwhile, in the first quarter of 2016 the growth’s expected to slow to 6.7%, as a median forecast of 14 economists surveyed by the WSJ.