Goldman Sachs says China's growth relies on stimulus execution

Goldman Sachs has shared its view on China's economic growth outlook. The bank believes that recent government measures to boost consumption have started to improve confidence in the economy. However, the effectiveness of these measures will largely depend on how well they are funded and implemented. Hui Shan, the Chief China Economist at Goldman Sachs, spoke to CNBC about these issues. He highlighted that while the government's fiscal stimulus shows strong support for growth, there are challenges in executing these policies. Effective use of funds and clear implementation strategies are essential for turning improved consumer sentiment into long-term economic momentum. There are several factors that analysts will be watching closely. These include how quickly local governments can provide financial support to businesses and households. Moreover, the response from consumers and businesses to the government incentives is crucial. The success of these measures also needs to consider ongoing challenges like weak demand in the property market and uncertainties in international trade. Goldman Sachs notes that the future growth of China’s economy will depend significantly on the successful execution of these plans. They will keep monitoring credit expansion, domestic consumption trends, and necessary structural reforms to evaluate their long-term effects.