On November 6, Xinhua reprinted an article from Beijing Youth Daily on the worries that China’s central bank faces. The bank stated that real estate and local government debt have become its most worrisome macroeconomic issues.
In the Third Quarter Monetary Policy Report from the People’s Bank of China, China’s central bank warned that inflation is likely to increase during the fourth quarter because of rising labor and service costs and higher rents.
The bank stated that China faces many risks and challenges in its economic operations. “The new strong growth momentum remains to be formed. The economy may experience de-leveraging and capacity reduction over a long period of time. There are major problems in the real estate sector and in local government debts. The structural adjustment and transformation of the development mode remain as arduous tasks.”
Source: Beijing Youth Daily reprinted by Xinhua, November 6, 2013