The Council of Ministers of China declared on Saturday that it will promote the recovery of consumption as the main engine of the economy and will boost imports, state channel CCTV reported, at a time of cooling global demand in which the main economies teeter on the brink of recession.
In a meeting chaired by Premier Li Keqiang, China’s State Council – which functions as a cabinet – also pledged to speed up the start-up of foreign investment projects, keep a stable yuan, facilitate cross-border travel and help companies to participate in domestic and foreign trade fairs.
The cabinet also reaffirmed its support for the private sector and the digital platform economy, which have been affected by a series of regulatory measures in recent years.
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Measures to help farmers start spring planting, including subsidies for soybean planting, were also discussed, CCTV reported.
During the Lunar New Year holiday week, which ended on Friday, consumption increased by 12.2% compared to the same period of the previous year, the tax authority reported on Saturday, reflecting a rebound after the relaxation of some of the restrictions. strictest in the world on COVID-19.
Analysts at Japanese brokerage Nomura noted in a research note on Saturday that in-person consumption of services had rebounded markedly, as seen in a rebound in travel and tourism receipts.
However, they noted that households are likely to be dovish in releasing pent-up demand.
Chinese exports contracted sharply in December as global demand cooled, but a more modest decline in imports led economic analysts to forecast a slow recovery in domestic demand in the coming months.
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The Chinese economy grew 3.0% in 2022, when strict COVID measures were still in place, well below the official target of “around” of 5.5%, according to a Reuters poll of economists.
Growth is expected to pick up to 4.9% in 2023, before leveling off in 2024, according to the survey.
Source: Reuters
Source: Gestion
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