The Chinese Communist Party’s new pledge to fix the “demand side” of the economy has prompted expectations the leadership will implement more egalitarian policies to stimulate consumer spending.
The Party’s top leaders used the phrase “demand-side reform” for the first time this month, in a departure from its past focus on “supply-side” changes which involve upgrading industry and cutting capacity in bloated sectors.
Although China is the only major economy set to grow this year due to its effective control of the pandemic, the new slogan signals that the ruling party is worried about the uneven recovery in which household spending has lagged behind investment in real estate and infrastructure. Beijing has not detailed what the phrase means, but officials have dropped hints and economists have been quick to offer suggestions.
Cash Piles, Vaccines Force Economists to Rethink Canada Outlook
Bloomberg 12/23/2020 Erik Hertzberg and Shelly Hagan
(Bloomberg) Even as Canadian policy makers ramp up Covid-19 restrictions, economists are becoming more optimistic about the country’s outlook.
Strong fiscal support, the start of vaccinations and a growing pile of savings in consumers’ accounts have caused forecasters to revise their views of Canada’s recovery. Economists surveyed by Bloomberg this month see output expanding by an average 5.4% annualized in the final three quarters of 2021, much higher than the 3.8% forecast in November.
Eric Lascelles, chief economist at RBC Global Asset Management, said in a report to investors last week he’s among those raising growth forecasts, citing “our belief that vaccines will prove a game-changer, and expectations that government stimulus will remain substantially in place.”
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Even as Canadian policy makers ramp up COVID-19 restrictions, economists are becoming more optimistic about the country’s outlook.
Strong fiscal support, the start of vaccinations and a growing pile of savings in consumers’ accounts have caused forecasters to revise their views of Canada’s recovery. Economists surveyed by Bloomberg this month see output expanding by an average 5.4 per cent annualized in the final three quarters of 2021, much higher than the 3.8 per cent forecast in November.
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Swedish Confidence Drops as Economy Grapples With Virus Surge
Bloomberg 12/22/2020 Rafaela Lindeberg
(Bloomberg) Swedish overall confidence levels ended a seven-month climb in December, as the Nordic region’s largest economy tightened restrictions to battle a severe surge in Covid-19 infections.
The overall economic tendency survey fell to 95.6, from a revised 97.2 in November, with the drop “largely a result of firms being less positive about the current situation,” the National Institute of Economic Research said in a statement Tuesday.
What Bloomberg Economics Says.
“New containment measures, coupled with the fear of catching the virus, mean Sweden will start 2021 on a weak footing. Contact-intensive services will suffer most before the arrival of the vaccine helps the recovery take hold next year.”