Nomura expects Beijing to deliver a stimulus package

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cheap canada goose uk Gross domestic product (GDP) fell 6.8% in January March year on year, official data showed on Friday, larger than the 6.5% decline forecast by analysts in a Reuters poll and reversing a 6% expansion in the fourth quarter of last year.While China has managed to get large parts of its economy up and running from a standstill in February, analysts say policymakers face an uphill battle to revive growth as the coronavirus pandemic ravages global demand.Nomura expects Beijing to deliver a stimulus package in the near term, which could be financed by the central bank through various channels.”However, unlike previous easing cycles, when most of the new credit went to finance spending on infrastructure, property and consumer durable goods, this time we expect most of the new credit to be used on financial relief to help enterprises, banks and households survive the COVID 19 crisis,” they said in a note.On a quarter on quarter basis, GDP fell 9.8% in the first three months of the year, the National Bureau of Statistics said, just off expectations for a 9.9% contraction, and compared with 1.5% growth in the previous quarter.Separate data showed Chinas industrial output falling by a less than expected 1.1% in March from a year earlier. Retail sales fell 15.8% in the same period. Fixed asset investment shrank 16.1% in January March.Chinas urban jobless rate was at 5.9% in March, down from 6.2% in February.The pandemic has infected more than 2 million globally and killed more than 130,000 cheap canada goose uk.

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