China vows to revive economy with stable employment and prices in H2

Employees work on the filter cloth production line at the Jingjin filter press factory in Dezhou, Shandong province, China August 25, 2022. REUTERS/Siyi Liu

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BEIJING, Aug 30 (Reuters) – China will step up measures to boost demand and stabilize employment and prices in the second half of the year to optimize economic outcomes, the country’s finance ministry said on Tuesday, as policymakers struggling to sustain faltering growth.

The pledge came after a package of new economic stimulus measures announced by China’s cabinet last week, including billions of dollars in political funding.

“China will make good use of local government special bonds and support the implementation of political bank financing tools” in the second half, the ministry said in a statement posted on its website.

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The ministry also said it would strictly limit new hidden local government debt, which refers to off-balance sheet debt financing of local governments.

China’s tax revenue rose in June due to the easing of COVID-19 restrictions, with 25 provinces reporting revenue growth, following declines in April and May due to tax credit refunds. added value, the ministry said.

“China will strengthen macroeconomic policy adjustment and plan additional policy tools to keep economic functioning within a reasonable range,” the ministry added.

Along with the slew of policy support measures, China is also stepping up infrastructure spending to boost the flagging economy that narrowly escaped a contraction in the June quarter.

($1 = 6.9176 Chinese yuan renminbi)

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Reporting by Liangping Gao and Ryan Woo; Editing by Christopher Cushing & Shri Navaratnam

Our standards: The Thomson Reuters Trust Principles.

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