Li Keqiang called on provinces to boost growth after consumption and output fell short of expectations.
China’s Premier Li Keqiang accounts for about 40% of the country’s economy after July data showed slower-than-expected growth in consumption and production due to Covid lockdowns and an ongoing property slump6 urged local authorities in three key provinces to step up measures to boost growth.
Li asked officials at the meeting to take the lead in boosting consumption and provide more financial support by issuing government bonds for investment, state broadcaster CCTV reported on Tuesday night. rice field. He also vowed to increase policy support “reasonably” to stabilize jobs and prices and ensure economic growth.
In a front-page article in the People’s Daily, the Communist Party’s flagship newspaper, Li said, “The economy and employment will be stable only when the main players in the market are stable.”
The meeting comes after Monday’s unexpected rate cut did little to assuage concerns over real estate and a Covid Zero-led slowdown. Economists have warned of a further slowdown in growth and called for more stimulus, including further cuts in policy rates and bank reserve requirements, as well as higher fiscal spending.
Lee acknowledged more-than-expected downward pressure from the Covid lockdown in the second quarter and called on local authorities to strike a balance between Covid control measures and the need to lift the economy. Only with can we solve all problems,” said Li.
Suggesting that China may rely on issuing more local bonds to revitalize the economy, Li said, “the outstanding balance of local special bonds has not reached the debt limit,” and the country ” We should activate the debt ceiling in accordance with the law,” he said. People’s Daily report.
Based on government budgets, local governments could issue an estimated 1.5 trillion yuan ($221 billion) of additional debt and bonds this year to support infrastructure spending. Politburo meeting. The deal could be approved in August, according to some analysts.
China’s 10-year government bond yield rose for the first time this week, rising one basis point to 2.64% from its lowest level in more than two years.
Lee urged local governments to accelerate the construction of projects with sound fundamentals in the third quarter to boost investment, and urged officials to expand domestic consumption of big-ticket items such as cars, He called for support for housing demand.
He also stressed the importance of opening up the domestic market to foreign investors, stating that the six major provinces of Guangdong, Jiangsu, Zhejiang, Henan, Sichuan and Shandong will contribute to the country’s overall foreign trade and foreign investment. I pointed out that it’s close to 60%.
“Opening up is the only way to make the most of the two markets and resources and improve international competitiveness,” Li said.
Li’s appearance suggests that the national leader has completed an annual two-week policy rollback at the Beidaihe resort.