In this episode of the Goldman Sachs Exchanges podcast, experts delve into the economic hurdles facing China and evaluate the impact of recent stimulus efforts. While there's an expectation for short-term fiscal support, the panelists express doubts about its long-term effectiveness. They discuss the heavy burden of local government debt, the limitations of relying solely on infrastructure and property investments for growth, and the urgent need to pivot towards consumption-driven strategies. Additionally, the prospect of rising US tariffs adds another layer of complexity, highlighting how interconnected domestic and international factors influence China's economic outlook. Although the shift in policy towards fostering consumption is seen as a positive move, the experts remain concerned about its pace and effectiveness.
