Next year, China will ease monetary policy to stimulate its economy. The measure has the support of President Xi Jinping.
Currently, the Asian country, the second-largest economy in the world, is struggling to contain the slowdown in the sector, which could be accentuated by Donald Trump’s threats to raise tariffs on Chinese exports upon his return to the White House.
The 24 members of the Political Bureau of the Central Committee of the Communist Party held a meeting on Monday, December 9, to “analyze and study future economic measures in 2025.”
The goal is to “strongly stimulate consumption, improve investment efficiency and broadly expand domestic demand” by 2025, through a more proactive fiscal policy and appropriate monetary policy easing.”
With this change of attitude, the Chinese government recognizes the challenges that the country is currently facing, in the midst of a struggle to “avoid the spectre of deflation, triggered by a severe real estate crisis and consumption levels well below those seen before the pandemic.”
Some measures are already being implemented, such as a reduction in interest rates along with an increase in the debt ceiling for local governments.
M.Pino
Source: cactus24
(Reference image source: Ling Tang on Unsplash)
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