China's finance minister says there is
room for more economic stimulus but offers no plan
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[October 12, 2024]
By KEN MORITSUGU
BEIJING
(AP) — The Chinese government is looking at additional ways to boost the
economy, Finance Minister Lan Fo'an said Saturday, but he stopped short
of unveiling a major new stimulus plan that analysts and stock investors
were hoping for.
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In this image made from a video, China's Finance Minister Lan Fo'an
speaks during a new briefing in Beijing Saturday, Oct. 12, 2024. (AP
Photo) |
Lan's remarks left the door open for such a plan in the future
but he did not divulge what is under consideration.
“There are other policy tools that are being discussed that are
still in the pipeline,” he said at a news conference, adding
that there is “ample room” in the government budget to raise
debt and increase the deficit.
China's economy has remained sluggish despite the lifting of
COVID-19 restrictions at the end of 2022. Companies have cut
back on hiring and wages and a prolonged downturn in the
property market has deflated consumer confidence, curbing
spending.
The government has raised pensions and offered subsidies to
people who trade in old cars or appliances for new ones, but
such steps have failed to jolt economic growth.
Chinese stock markets rallied after the central bank and other
government agencies announced steps at the end of September to
revive the property sector and prop up financial markets.
But the rally has since cooled amid concern about whether the
moves were enough to generate a sustainable economic recovery.
Investors were hoping Lan would announce a stimulus package of
up to 2 trillion yuan ($280 million).
The finance minister instead said the government would roll out
a package of incremental measures to speed up implementation of
its existing policies.
They include increasing scholarships for students, issuing bonds
to help major banks replenish their capital, and providing more
support to highly indebted local governments, some of which have
had to curtail public services.
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