EM by EM #27 Not a Bazooka, but a Pumpgun
Finally. Beijing got its act together and produced a stimulus package.
Happy days and glory ahead for the Chinese economy and relevant prices? Probably not.
“The package is not huge or big but I think the impact will be big because it focuses on the climate-change issue” stated former People’s Bank of China Deputy Governor Zhu Min to Bloomberg.
That ought to tell you everything you need to know about the scale of it. 1 trillion Yuan may well be enough to for the Chinese economy to bump up around the official growth targets of 5%. But beyond that? Hardly
Chart 1: China GDP, contributions