BANGKOK (AP) — Shares were mixed in Asia on Monday after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half…
BANGKOK (AP) — World shares were mixed on Monday after China reported that its economy expanded at an 8.1% annual pace in 2021, though growth slowed to half that level in the last quarter. Paris, Frankfurt, Tokyo and Shanghai advanced while Hong Kong and Seoul declined. The weakness in China’s economy toward the end of 2021 is prompting suggestions Beijing should intervene to prop up growth with interest rate cuts or by injecting money into the economy through public works spending. Shortly before the growth data were released, the Chinese central bank announced a rate cut on medium-lending to commercial banks to the lowest level since 2020. “Economic momentum remains weak amid repeated virus outbreaks and a struggling property sector,” Julian Evans-Pritchard of Capital Economics said in a commentary. He expects China’s policymakers to keep limits on lending relatively tight and control credit growth. “The upshot is that policy easing is likely to soften the economic downturn rather than drive a rebound,” he said. Slowing activity in China, the region’s biggest economy, can chill growth throughout the region.
