Bank of China International Urges Effective Incremental Stimulus to Address Sluggish Demand
Incremental Stimulus Needed Amid Economic Challenges
China's economic landscape is witnessing sluggish demand, prompting calls for effective incremental stimulus from leading economists. At the recent Caixin Summit, Zhu Haibin, chief economist at J.P. Morgan, highlighted the market's disappointment following the National People's Congress's announcement regarding the 6 trillion yuan debt swap. While this measure aims to resolve local government debt issues, Zhu emphasized that it's imperative to stimulate essential consumption and address economic demand effectively.
Investment and Consumption Demand
- Hong Hao from Grow Investment Group stated that the continuous slowdown in the growth of the real economy reflects deeper structural issues.
- As per Finance Minister Lan Foan, a more supportive fiscal policy is anticipated next year, with increased flexibility for special government bonds.
Experts remain cautious, stressing that without significant reform, policies risk merely serving as patchwork solutions rather than genuinely addressing economic challenges.
Shifting the Economic Model
- Guan Tao of Bank of China International posed critical questions regarding the direction of investment and consumption demand.
- He emphasized the need for reforms that would enable these policies to effectively stabilize growth.
As China approaches key political meetings, including the upcoming Politburo conference, the spotlight remains on whether substantial changes to economic policy can be made to reinvigorate the economy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.