China adding stimulus to boost demand
A cashier counts renminbi notes at a bank in Nantong, Jiangsu province. [Photo/Sipa]
China is expected to consider launching more monetary support and fiscal stimulus at an early date to boost domestic demand, providing a key driving force for its economy and global growth, government policy advisers and economists said.
Sensible policy options include trimming the amount of money lenders hold as reserves, granting low-income households cash subsidies, raising the deficit-to-gross domestic product ratio or issuing special treasury bonds and allocating part of next year’s quota of local government special bonds in advance, they said.
Such measures to boost domestic consumption and investment have become imperative, as the country’s export growth could weaken due to global stagflation risks and as domestic demand has been dampened by recent COVID-19 outbreaks, with declines in retail sales and…
