NEW YORK — A new data-driven study shows no sign of slowing the Chinese economy’s growth, despite the country’s recent turmoil and its high debt levels.
The report released Wednesday by the research firm Bespoke Investment Research (BIR) and Bloomberg Intelligence shows China’s manufacturing output increased 2.7% in the fourth quarter, with the biggest increase in the manufacturing sector, accounting for about 60% of the total.
The latest data also show that China’s government has been trying to boost its exports, while its real estate market is showing signs of rebound, BBR said.
“There are a number of reasons why this slowdown in China’s economy is not expected to be as severe as it has been in the United States,” said Matthew Yglesias, an economist at Bloomberg Intelligence.
“First, the Chinese government is very reluctant to cut back on spending or loosen fiscal policy.
Second, China’s financial markets have not yet been subjected to a similar level of pressure that is being experienced in the U.S., where the market is still recovering from the financial crisis,” Ygleias said.
The BBR study comes as China’s central bank has been weighing whether to start selling more government debt as a way to boost growth.
On Thursday, the bank’s policymakers will decide whether to continue buying government bonds as part of a plan to stabilize the economy, Reuters reported.
The government’s bond purchases are also being considered as a means to boost the economy’s inflation rate.
“The question now is whether there are additional ways to stimulate the economy without raising prices or cutting consumer spending,” Ylias said in a note to clients.
China’s official People’s Bank of China said in October that it would gradually raise the amount of cash that the central bank purchases from the banks it owns, Reuters said.
In December, the PBOC said it would be reducing the size of its cash holdings.
That decision has prompted worries that the economy may be headed for a slowdown.
The slowdown in the Chinese data could hurt Beijing’s hopes for a global recovery.
The world’s second-largest economy has been on a spending spree to boost consumer spending and boost exports.
Its stock market has fallen nearly 70% in 2017.
Beijing has also announced plans to build more than 7,000 new skyscrapers and invest $1 trillion in infrastructure, which could boost growth in the country.
China is also facing a number problems from a series of political scandals, including corruption allegations against top officials.