Beijing—China unveiled some of its boldest measures in years on Tuesday aimed at boosting its struggling economy as leaders grapple with a prolonged property sector debt crisis, continued deflationary pressure and high youth unemployment.
The world’s second-largest economy has yet to achieve a highly anticipated post-pandemic recovery and the government has set a goal of five percent growth in 2024 — an objective analysts say is optimistic given the headwinds it is facing.
Central bank chief Pan Gongsheng told a news conference in Beijing on Tuesday that the bank would cut a slew of rates in a bid to boost growth, pledging to “promote the expansion of consumption and investment.”
The moves represent “the most significant… stimulus package since the early days of the pandemic”, said Julian Evans-Pritchard, head of China economics at Capital Economics.
However “it may not be enough”, he warned, adding a full economic recovery would “require more substantial fiscal support than the modest pick-up in government spending that’s currently in the pipeline.” AFP
