New Economic Policies Mean Both Growth and Reform

Many believe that the new leadership's economic policy has three pillars: no stimulus, structural reforms and deleveraging. But I believe that interpretation is, to an extent, misleading. The new policy is not about "reform instead of growth," but "both reform and growth."

Meanwhile, partial policy easing is already underway, though on a significantly smaller scale than in the past. The new financial policy approach does not mean strictly deleveraging, but merely slowing the increase in the leverage ratio. The government will introduce both pro-growth measures and structural reforms. Neither type of change will be aggressive. This more balanced policy might bring down growth rates below that of past few years, but may be more sustainable.