Chinese leaders pledge to step up policy support to boost economy
China will focus on boosting consumption to increase domestic demand Illustration: Binay Sinha
China will step up policy support for the economy and focus on boosting consumption to boost domestic demand, the Politburo, the ruling Communist Party’s top decision-making body, was quoted in state media as saying on Tuesday.
At present, the negative effects of changes in the external environment are increasing, domestic demand is insufficient and the transition from old growth engines to new ones remains painful, the Politburo said after a meeting chaired by President Xi Jinping.
“Macroeconomic policies should be continuously strengthened and made more powerful,” the Poliburo said, according to the official Xinhua news agency.
“We should strengthen countercyclical adjustment, implement proactive fiscal policy and prudent monetary policy, accelerate the overall implementation of adopted policy measures, reserve a series of incremental policy measures early and launch them in a timely manner.”
According to the Politburo, China will focus on stimulating consumption to increase domestic demand. The emphasis of economic policy will also shift more to improving the living conditions of the people.
Beijing will also strengthen the policy of employment priority and promote jobs for key groups, including college graduates, and step up efforts to solve problems such as food safety and social security, Xinhua said, citing the meeting.
The world’s second-largest economy is facing multiple challenges, ranging from a persistent real estate crisis and deflationary pressures to weak domestic demand and growing hostility to its export dominance abroad.
The economy grew much slower than expected in the second quarter, with the consumer sector in particular causing concern due to labour market problems and the ongoing recession in the housing market.
First print: Jul 30, 2024 | 1:20 PM IST