The economy was likely to broadly follow a stable growth path as authorities conducted fiscal and monetary policies in a timely manner, although it was expected to be affected to some extent by the U.S.-China trade friction and authorities' measures to push forward with deleveraging.
The Chinese economy is likely to broadly follow a stable growth path, albeit at a somewhat reduced pace, as authorities-- having relatively large room for monetary and fiscal policy-- have proactively been carrying out economic stimulus measures.
The Chinese economy is likely to follow a generally stable growth path, underpinned by proactive economic stimulus measures by the authorities, but if adjustments in excess production capacity are prolonged, that may delay the recovery of the emerging economies, particularly those in Asia, mainly through the trade channel Chart 6.
From the point of view of today's mainstream schools of economic thought, government should strive to keep some broad nominal aggregate on a stable growth path(for proponents of new classical macroeconomics and monetarism, the measure is the nominal money supply; for Keynesian economists it is the nominal aggregate demand itself).
The Chinese economy has continued to be in a state of deceleration due to downward pressure from an overhang of production capacities and inventory adjustments in the manufacturing sector. However, the economy is likely to broadly follow a stable growth path-- albeit at a somewhat slower pace, mainly in the manufacturing sector-- as authorities proactively carry out policy measures to support economic activity.
Emerging economies are likely to continue their slowdown for the time being. Since the Chinese authorities, having relatively large room for monetary and fiscal policy, have proactively been carrying out economic stimulus measures, the Chinese economy is expected to follow a generally stable growth path, albeit at a somewhat reduced pace.
By region, it is projected that the U.S. economy will continue to expand moderately and that the Chinese economy will broadly follow a stable growth path with authorities conducting fiscal and monetary policies in a timely manner, despite being affected to some extent by the trade friction with the United States and deleveraging policy measures.
As for the outlook, the economy is likely to follow a generally stable growth path, albeit at a somewhat reduced pace, due to policy measures carried out by the authorities to support economic activity from both the fiscal and monetary sides. However, the nominal GDP growth rate has been declining, and the acceleration of the disinflationary trend as well as the excess debt problem continue to require attention.
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