Economic policy support will be ramped up to avoid further loss of momentum, according to China’s major economic policymakers.
According to a report from Reuters, the country’s policymakers have emphasised that this year’s third quarter is vital to implement policies that would prevent further decline to the economy.
Reuters stated that the comments have suggested the policymakers are in a hurry to prevent further economic slowdown that was exacerbated by the recent outbreaks of COVID-19 as well as the ongoing property crisis which China is currently facing.
Deputy secretary general of the National Development and Reform Commission, Yang Yinkai, stated at a recent press conference that the country will introduce economic policies that would include accelerating investments in infrastructure while at the same time work on attracting social capital into major projects.
He also said that China will conduct its economic operations within a range that is considered reasonable and achievable to obtain the best results possible for economic growth.
Meanwhile, during the same news conference, the vice governor of the People’s Bank of China, Liu Guogiang, stated that the state’s central bank will increase its support for economic policies to boost the country’s economy. On the other hand, he said the central bank will make an effort to avoid flood-like stimulus.
It was only by a hair’s breadth that China’s economy managed to escape contraction during the second quarter, despite widespread lockdowns and a worsening property crisis, both of which have severely undermined consumer and corporate confidence.
Recent manufacturing activity surveys and an increasing number of Covid-19 cases indicated a further loss of momentum in the economy in August, adding pressure to an already precarious recovery.
Prior to this, in August of this year, China’s State Council had approved another 1 trillion yuan worth of stimulus that is largely focusing on infrastructure spending.
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