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China’s economic growth will decelerate in 2018 and despite the slowdown, the central bank will have to continue to act to encourage the deleveraging of financial institutions and corporates and reduce financial instability risks, suggests the research team at BNP Paribas.

Key Quotes

“Fiscal policy should remain expansionist.”

“The outlook for exports and household spending is rather favourable in the short term, but the tightening of domestic credit conditions, restructuring measures in the industry and less buoyant property market will weigh on economic activity.”