Adam Wolfe in The Wall Street Journal
18th OCT. 2023
In her recent article, Stella Xie from The Wall Street Journal discusses ‘China’s economy facing deepening troubles in the years ahead’
As a share of GDP, Chinese local governments’ fiscal resources—which rely heavily on home sales—have deteriorated to their worst level in more than a decade, according to Adam Wolfe, emerging market economist at Absolute Strategy Research. He argues that local governments may be forced to slow their investments in infrastructure projects and cut back on industrial subsidies as a result.
“The overall drag on growth could be more severe next year,” said Wolfe, who predicts that growth may slump to 3% or less in the coming years as Beijing seeks to reduce real estate’s outsize role in driving growth.