Aerial photo taken on June 21, 2018 shows morning view of the Lujiazui area in Pudong of Shanghai, east China. (Xinhua/Ren Long)
China's key economic barometers are likely to rebound in the first half of 2020, said J.P. Morgan's Chief China Economist Zhu Haibin, adding that manufacturing and infrastructure investment will possibly start driving up the economy next year.
BEIJING, Dec. 9 (Xinhua) -- China's key economic barometers are likely to rebound in the first half of 2020, J.P. Morgan's Chief China Economist Zhu Haibin has said, advising against market pessimism.
Attributing China's downward economic pressure in 2019 mainly to cyclical factors, Zhu said manufacturing and infrastructure investment will possibly start driving up the economy next year.
The manufacturing sector is looking at more investment amid the estimated recovery of the producer price index that may boost profit for companies in the industry, said Zhu.
Aerial photo taken on Oct. 27, 2019 shows a high-speed train running on the Guanting Lake Bridge section of Beijing-Zhangjiakou high-speed railway in Zhangjiakou, north China's Hebei Province. The construction of each station along the Beijing-Zhangjiakou high-speed railway is to be completed soon, following the operational test of each station. (Xinhua/Yang Shiyao)
The growth rate for infrastructure investment is expected to climb to between 5 to 6 percent next year as the government is purposing the issuance of special local government bonds toward financing for infrastructure, according to Zhu.
While consumption may be partially dented by consumer price index (CPI) hikes due to soaring pork prices in the coming year, Zhu said the ascending CPI is merely structural and is unlikely to trigger shifts in monetary policy.
Instead, major policy undertakings next year to stabilize consumption may be subsidizing middle-to-low income households and restoring hog production, Zhu suggested. ■
