China’s finance ministry has pledged to implement measures to boost domestic demand, including pensions and medical insurance subsidies, to support consumer goods trade-in schemes, and promote effective investment.
The Ministry of Finance aims to increase expenditure intensity and accelerate spending to drive consumption and investment. This is part of Beijing’s efforts to revive the country’s economy, which growth experts say needs a fiscal policy boost.
Key measures include:
– Increasing pensions and medical insurance subsidies
– Promoting effective investment and issuing new bonds
– Boosting spending and consumption
Finance Minister Lan Foan stated that the government will implement a more proactive policy combination for a higher fiscal deficit ratio to drive investment and consumption growth. This approach is seen as a shift from stimulating investment to driving spending, with economists expecting more consumption-boosting fiscal policies in the pipeline.
The move comes after Beijing’s central economic work conference identified key tasks for next year, including reviving consumption as a top target. The government has vowed to take action to stimulate growth and create jobs, paving the way for a stronger economy in 2025.
Source: https://www.scmp.com/economy/china-economy/article/3292151/chinas-finance-ministry-vows-measures-boost-consumption-and-investment-next-year