China indebted and data disapoints overall – Commerzbank

By FXStreet Dr Jörg Krämer, Chief Economist at Commerzbank noted that economic activity in China has been disappointing overall.

Key Quotes:

“In the first quarter, Chinese GDP grew by only 1.1% on the fourth quarter of 2015. China faces economically difficult years, as especially stateowned enterprises, suffering from high overcapacity, are very highly indebted.”

“Admittedly, state-owned banks are likely to keep many of these enterprises afloat, preventing a recession. But businesses kept on artificial life support will take away resources from healthy businesses and weaken the overall economy for years.”
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Source:: FX Street