China to step up policy adjustments amid tortuous recovery
By Ellen Zhang and Kevin Yao
BEIJING (Reuters) -China's top leaders pledged on Monday to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand, signalling more stimulus steps.
The world's second-largest economy grew at a frail pace in the second quarter as demand weakened at home and abroad, raising pressure on policymakers to deliver more stimulus to shore up post-COVID recovery.
China will step up economic policy adjustments, focusing on expanding domestic demand, boosting confidence and preventing risks, state news agency Xinhua cited the Politburo, a top decision-making body of the ruling Communist Party, as saying.
«Currently, China's economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment,» Xinhua quoted the Politburo as saying, after a meeting chaired by President Xi Jinping.
China will implement its macro adjustments «in a precise and forceful manner» and strengthen counter-cyclical adjustments, as the government sticks with a prudent monetary policy and pro-active fiscal policy, the Politburo was quoted as saying.
Xinhua quoted President Xi as saying during a separate meeting that China will strive to achieve its annual development targets.
While China is seen on track to hit its modest 2023 growth target of around 5%, there are risks of the annual goal being missed for the second year in a row, analysts said.
Most analysts say policymakers are unlikely to deliver any aggressive stimulus due to worries about growing debt risks.
Capital Economics analysts said that
Read more on investing.com
