CF40 Report Urges Nominal GDP Growth as Key Policy Reference

The significance lies in the framing: a prominent Chinese research body arguing that nominal rather than real growth should anchor short-term macro policy is a tacit acknowledgment that subdued inflation, not just output, has become the binding constraint. This speaks to policymakers weighing reflation tools and to anyone exposed to China's nominal growth trajectory. The report's two-track logic — reflation now, structural reform later — leaves open whether the near-term push and the post-property growth rebuild can be sequenced without one crowding out the other.