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China’s economy churned out growth of 6.7%y/y in Q2. Even if it’s the slowest pace since 2016 it’s still healthy by anyone’s standards, according to analysts at RBS.

Key Quotes

“But that’s not the biggest concern. Efforts to rein in credit are starting to bite with signs of waning domestic growth momentum. The last time that happened in 2015 things got a little ugly. Wary of growth slowing too much the central bank has loosened policy a little in recent weeks. The bigger test will be the government. Is it willing to stay the course and shake the economy from its credit addiction? At least the global trade landscape is looking solid.”