China's latest stimulus package: is it enough to save the economy?

In this episode of The Sound of Economics,  Yuyun Zhan
invites Alicia García-Herrero and Alfred Schipke to explore the
stimulus package China announced in late September 2024. They
discuss why the Chinese government introduced these new measures,
the key components of the package, especially how it addresses
the real estate crisis and local government debt issues. Garcia
Herrero notes that the stimulus is increasingly resembling a
rescue package, likening it to a cleanup exercise for the
economy. Schipke highlights the absence of direct support for
households as a gap in the current package. Finally, they discuss
the need for structural reform in China’s economy.

This episode is part of the ZhōngHuá Mundus series of The Sound
of Economics. ZhōngHuá Mundus is a newsletter by Bruegel,
bringing you monthly analysis of China in the world, as seen from
Europe. Sign up now to receive it in your mailbox!