OECD: China’s policy stimulus may worsen economic distortions

BEIJING: China’s stimulus measures will shore up economic growth this year and next but may undermine the country’s drive to control debt and worsen structural distortions over the medium term, according to an Organisation for Economic Co-operation and Development (OECD) report.

Beijing has stepped up fiscal stimulus to prevent a sharper slowdown in the world’s second-largest economy, which is being squeezed by weaker domestic demand and a trade war with the United States.