China’s economy has performed strongly this year, official and private indicators showed on Wednesday, giving policymakers room to shift their attention to financial bubbles and rising debt after years of pump-priming.
A flood of credit and fiscal stimulus kept factories humming and construction sites crowded last year, allowing Beijing to meet its growth target despite a slow start.
The use of road, rail, electricity and water projects to support growth has also transformed China’s landscape during the past decade. The Asian Development Bank said in a report on Tuesday that China was far ahead of other low- and middle-income countries in terms of meeting infrastructure needs.
But authorities are now seeking to balance support for near-term growth with efforts to address long-term risks from excessive debt. The latest data suggest they will enjoy some freedom to concentrate on managing such dangers this year.
