Could A 'Double-Dip Recession' Scenario Be On The Cards?

With Q109 having seen the economy grow at its slowest pace since quarterly records began in 1992, Ba Shusong's warning on April 27 that China's monetary policy is 'excessively loose' may appear to be rather odd on the surface of things. However, given that new loans surged by CNY4.58trn (US$671bn) in Q109, and that M2 money supply growth accelerated to 25.5% y-o-y in March, perhaps the Development Research Centre economist's concerns are not as misplaced as one might initially assume.

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