Policy Simulation: Effects of China’s Tax Cuts Policy to Boost the Growth of Household Consumption
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Our forecast results shows that the Chinese economy is expected to continue to slow down in 2020 due to the following reasons: First, the growth of investment is difficult to rebound shortly as, one the one hand, the increasing global trade uncertainty due to Sino-US trade friction has inhibited the investment growth of China’s export-oriented enterprises; on the other hand, the investment of real estate is difficult to grow rapidly due to strict regulation policy impact, infrastructure investment is unlikely to increase significantly owing to high government debt ratio, and negative growth in profits has weakened the growth of manufacturing investment.
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