China’s recent consumption-boosting measures have helped restore confidence in the economy, but their effectiveness will depend on funding availability and policy implementation, according to Goldman Sachs Chief China Economist Hui Shan. Speaking to CNBC, Shan analyzed the latest macroeconomic data, emphasizing that while the government’s fiscal stimulus efforts signal strong support for economic growth, execution challenges remain a key concern.

Goldman Sachs notes that while consumer sentiment has improved, translating this into sustained economic momentum will require efficient deployment of funds and clear policy implementation strategies. Key factors to watch include how quickly local governments can channel financial support into the real economy, the extent to which households and businesses respond to incentives, and whether the measures can counteract headwinds such as sluggish property demand and external trade uncertainties.

As markets digest the latest data, Goldman Sachs maintains that China’s growth trajectory remains dependent on the successful rollout of these policies, with a close eye on credit expansion, domestic consumption trends, and broader structural reforms to assess their long-term impact.