FILE PHOTO: A staff member wipes down a seat at a restaurant after a restaurant ban was imposed during the coronavirus disease (COVID-19) outbreak in the central business district (CBD) of Beijing, China, June 2, 2022. REUTERS /Tingshu Wang
BEIJING (Reuters) – China will step up policy support for the economy, the country’s top economic policymakers said on Monday, stressing that the third quarter will be crucial for the introduction of policy measures amid signs of a further loss of economic momentum.
The comments indicated the urgency for policymakers to stave off an economic downturn made worse by fresh COVID outbreaks and a struggling real estate sector.
China will accelerate infrastructure investment and attract social capital for key projects, Yang Yinkai, deputy secretary-general of the National Development and Reform Commission, said at a news conference in Beijing.
Yang added that China will keep its economic activities within reason and achieve the best possible results for economic growth.
Liu Guoqiang, vice governor of the People’s Bank of China, said at the same press conference that the central bank will step up policy support for the economy but avoid flood-like stimulus.
China’s economy narrowly avoided a slowdown in the second quarter amid widespread lockdowns and a deepening housing crisis that have severely damaged consumer and business confidence.
Recent surveys of factory activity and a rising number of COVID cases pointed to a further loss of momentum in the economy in August, putting pressure on the shaky recovery.
Reporting by Kevin Yao and Ellen Zhang; Edited by William Maclean and Edmund Klamann
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