China's State Council pledged on Monday to step up counter-cyclical policy support as growth momentum fades, with Premier Li Qiang's cabinet calling for faster bond issuance and quicker infrastructure spending. The push comes after second-quarter growth slowed to 4.3%, against Beijing's 4.5%-5% target for the year.
China's cabinet moved to shore up a slowing economy on Monday, pledging to step up counter-cyclical macroeconomic policy adjustments to keep the country on track for its annual growth target. The State Council, chaired by Premier Li Qiang, said existing measures need better execution, and government bond issuance and deployment should move faster.
Beijing is aiming for economic growth of 4.5%-5% this year. Growth slowed to 4.3% in the second quarter, and industrial output, retail sales and investment all weakened at the start of the third quarter. The property sector, meanwhile, remained entrenched in a prolonged downturn.
Infrastructure and fiscal tools take priority
The cabinet urged major infrastructure projects tied to the six national networks under China's 2026-2030 five-year plan to break ground as soon as possible. It also called for more efficient fiscal spending, greater use of unused local government debt capacity, and flexible deployment of monetary policy tools.
Officials pledged additional support for investment and consumption through interest rate subsidies, infrastructure upgrades and targeted policy measures. China will also expand relending facilities for technology innovation, industrial upgrading, agriculture and small firms.
New measures for housing and jobs ahead
Beijing is also studying new steps to support the housing market, employment and income growth, the cabinet added. Leaders have pledged to accelerate fiscal spending and introduce new policies according to Investing.com: "in a timely manner" to keep this year's targets within reach.
Source: Investing.com
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