The Uncertain Prospect of China’s Fiscal Stimulus

Investors have been hoping for a big fiscal stimulus package from China to jumpstart its struggling economy, but longtime China watchers say those hopes are likely to be dashed. Economic data from the country continues to show a slowdown in growth, with retail sales, industrial output, and investment all growing at a slower-than-expected pace. Additionally, concerns over the troubled property sector are casting a further shadow on the outlook. Despite calls for Beijing to deliver a massive fiscal stimulus, economists suggest that it may never come or be significantly scaled back.