A new stimulus might (or might not) jump-start China's economy

Fears of social instability drive rate cuts

Yuan banknote with stock charts drawn on top of it, representing China's economy
The new stimulus is the "most aggressive" attempt yet to pull China's economy out of a slowdown
(Image credit: Anton Petrus / Getty Images)

Doldrums continue to plague China's post-pandemic economy. Now the country's leaders are firing up a new round of plans to jump-start growth. It just might not be enough.

Amid concerns of a "prolonged structural slowdown," China's central bank this week unveiled the "biggest stimulus" of the post-Covid era, Reuters said. The "broader-than-expected" package includes mortgage interest rate cuts and other measures designed to pull the country's economy out of a "deflationary funk." That's the good news. The not-so-good news? "The move probably comes a bit too late, but it is better late than never," said Natixis' Gary Ng to Reuters.

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Joel Mathis, The Week US

Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.