Economy
April 11, 2019
CRU: China Stimulus 2018-19--Less Positive for Commodities Demand
Written by Tim Triplett
By CRU Chief Economist Jumana Saleheen
The market had hoped that China would unveil a large stimulus package at the March NPC, but any expectation of a large boost to world growth and commodities demand has not come, yet. The current stimulus package is smaller, less potent and less positive for commodities demand than previous episodes of stimulus. This is because two-thirds of the stimulus comes via tax cuts, and one-third from direct government spending. Tax cuts give companies money, which they may save, and will not translate into metals demand.
