The world’s second-largest economy has remained under pressure from a real estate slump and tepid consumer confidence.
“We believe the risk that China will miss the ‘around 5%’ full-year GDP growth target is on the rise, and thus the urgency for more demand-side easing measures is also increasing,” Goldman Sachs analysts said in a report.
“The current policy to stabilize the property market is clearly not enough,” said Xu Gao, Beijing-based chief economist at Bank of China International.
Local residents with umbrellas walk out of a metro station in rain during morning rush hour on September 20, 2024 in Beijing, China.
Local residents with umbrellas walk out of a metro station in rain during morning rush hour on September 20, 2024 in Beijing, China.
BEIJING — More economists are calling for China to stimulate growth, including those based inside the country.
China should issue at least 10 trillion yuan ($1.42 trillion) in ultra-long government bonds in the next year or two for investment in human capital, said Liu Shijin, former deputy head of the Development Research Center at the State Council, China’s top executive body.
That’s according to a CNBC translation of Liu’s Mandarin-language remarks available on financial data platform Wind Information.
His presentation Saturday at Renmin University’s China Macroeconomy Forum was titled: “A basket of stimulus and reform, an economic revitalization plan to substantially expand domestic demand.”
Liu said China should make a greater effort to address challenges faced by migrant workers in cities. He emphasized Beijing should not follow the same kind of stimulus as developed economies, such as simply cutting interest rates, because China has not yet reached that level of slowdown.