China needs deeper structural reforms: OECD

While its stimulus is working, too much effort is being directed at state-owned firms; more fiscal reforms needed

Published Tue, Apr 16, 2019 · 09:50 PM

Beijing

CHINA'S current fiscal policies to support the slowing economy have been effective in avoiding a sharp drop of activity and ensuring fiscal stability, but structural challenges remain, the Organisation for Economic Cooperation and Development (OECD) said in its latest China report.

"We are seeing continual growth in an environment of fiscal stability" said Ludger Schuknecht, deputy secretary-general of the organisation during a presentation of the report to the press, the sixth of its kind.

The OECD expects China's economy to grow 6.2 per cent this year and 6 per cent in 2020. That is down from a previous estimate of 6.3 per cent. It warned in its report that the slew of measures implemented over the past 18 months in…