BEIJING: China will likely roll out a raft of pro-growth measures in the third quarter to revive the nation’s economic momentum, with a key focus on expanding domestic demand, spurring consumption, stimulating the vitality of the private investment and stabilizing the property sector, experts said on Friday.
They said the country will continuously strengthen countercyclical adjustments and policy reserves to ramp up macro adjustments, such as further reductions in the reserve requirement ratio and interest rate cuts, speeding up local government special bond issuance, and more tax and fee cuts to ease the burden on enterprises.
Their comments came after China’s top economic regulator pledged on Friday that it would study and plan a batch of more targeted and stronger reserve policies that can be promptly used when required. Yuan Da, director of the Department of National Economy at the National Development and Reform Commission, said the country will give more prominence to stabilizing growth and take targeted and forceful measures to implement macroeconomic regulation. Yuan told a news conference on Friday in Beijing that the country will strengthen policy reserves in areas such as better meeting residents’ basic housing needs and their need for housing improvements, as well as expanding effective investment.
“The policy focus will be placed on expanding domestic demand, boosting confidence and preventing and defusing risks,” said Liu Dian, an associate researcher at Fudan University’s China Institute. “China also needs to continue to strengthen countercyclical adjustments and step up fiscal and monetary policy support to shore up growth.” Liu said is advisable for policymakers to consider increasing spending on public services, issuing consumer vouchers and boosting transfer payments to local governments, which will help stimulate demand as well as support local consumption and investment.
Ye Yindan, a researcher at the Bank of China Research Institute, said the country will likely introduce a raft of stimulus policies in the third quarter, mainly in key fields such as spurring consumption, boosting confidence in the private sector, and stabilizing the housing market. –The Daily Mail-China Daily news exchange item
