China’s cabinet said on Saturday (28) it will promote a recovery in consumption as the main driver of the economy and boost imports, state broadcaster CCTV reported, at a time when the world’s major economies are on the brink of recession.
At a meeting chaired by Premier Li Keqiang, China’s state council also pledged to speed up the launch of foreign investment projects, maintain a stable yuan, facilitate international travel and help companies participate in domestic and international trade fairs. international.
The cabinet also reaffirmed support for the private sector and the digital platform economy, which has suffered a series of regulatory crackdowns in recent years. It also discussed measures to support farmers to start planting in the spring, including subsidies for sowing soybeans, CCTV reported.
During the week-long Lunar New Year holiday that ended on Friday, consumption in China rose 12.2% from the same period last year, the tax authority said on Saturday, reflecting a rebound after easing. some of the strictest restrictions against Covid-19.
Analysts at Japanese broker Nomura said on Saturday that consumption of personal services had remarkably recovered in China, as seen in the recovery of travel and tourism receipts. But they said households are likely to be moderate in releasing pent-up demand.
Chinese exports shrank sharply in December as global demand cooled and a more modest decline in imports led economic analysts to predict a slow recovery in domestic demand in the coming months.
China’s economy grew by 3% in 2022 when strict lockdown measures were still in place, well below the official target of “around” 5.5%, official data showed earlier this month.
China’s growth is expected to rebound to 4.9% in 2023 before leveling off in 2024, according to a Reuters poll of economists.
Source: CNN Brasil
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