Current location:politics >>
More efforts called on to energize consumption
politics7People have gathered around
IntroductionA pedestrian walks past the People's Bank of China, the country's central bank, in Beijing on May 22 ...
A pedestrian walks past the People's Bank of China, the country's central bank, in Beijing on May 22. [PHOTO by JIANG QIMING/CHINA NEWS SERVICE]
Economists suggest policy support, voucher issuance to boost spending confidence
Though the recent decline in deposit rates is seen as part of the country's efforts to energize consumption, economists have divided thoughts on how far the move will push consumption. Going forward, experts are calling for more forceful and prompt measures to boost consumer confidence.
Gao Ruidong, chief macroeconomist at Everbright Securities, said that the current high level of deposits and weak household sector loans are primarily due to a decline in household risk appetites and their tendency toward precautionary savings against uncertainties.
"Ultimately, the restoration of consumer confidence can only rely on improvements in employment and income expectations," he said.
A research report issued by GF Securities on May 28 showed that the tendency of households to keep their money in saving accounts instead of spending it is still surging. The value of outstanding household bank wealth reached 26.6 trillion yuan ($3.71 trillion) as of May 26, pointing to an increase of 400 billion yuan compared to April 30. Such value had already seen a significant increase of 1.2 trillion yuan in April.
Robin Xing, chief China economist at Morgan Stanley, said it will be challenging to push for notable consumption momentum and more policy support is needed.
"Structurally, consumption growth is unlikely to return to the pre-COVID-19 levels. We expect the potential growth for private consumption will be 4.8 percent for the year 2024, which is slightly lower than pre-COVID-19 trend," he said, adding that the current uncertainty in employment is part of the reason behind the bumpy recovery in consumption.
More direct and prompt policy support is therefore required to fuel the consumption market and more effectively boost this year's growth, experts said. Gao suggested that a large-scale government issuance of consumer vouchers could have a more direct impact on the retail spending than a lower deposit rate.
"Since the employment situation among young people remains severe and the willingness of spending among households remains unstable, the consumption sector may see an uneven recovery this year," he said. "We believe that a large-scale issuance of consumption vouchers is feasible to quickly drive growth."
He suggested that consumption vouchers worth 300 billion yuan be distributed to households.
"Such an amount of vouchers will generate an additional 1 trillion yuan in consumption, contributing to a 0.62 percentage point increase in GDP growth," Gao said.
He said that the stimulus effect of issuing consumption vouchers can be significantly higher in underdeveloped regions than in developed regions. In addition, the issuance of these coupons can lean more heavily toward low-income and unemployed groups, who can use the coupons for daily essentials in retail and living.
Targeted consumption vouchers can be distributed in sectors like dining, accommodations, tourism and autos, catering to the specific consumption needs of different groups," Gao added.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“Horizon Herald news portal”。http://saotomeandprincipe.fivesixgroup.com/news-3d099918.html
Related articles
Iran helicopter crash that killed President Raisi could reverberate across the Middle East
politicsJERUSALEM (AP) — The helicopter crash in which Iranian President Ebrahim Raisi, the country’s foreig ...
【politics】
Read moreChina Coast Guard to conduct regular patrols in Xiamen
politics(ECNS) -- The Fujian Coast Guard Bureau will carry out regular patrols in the waters between Xiamen ...
【politics】
Read moreReturn looted relics to countries of origin
politicsA poster for the second episode of the short video series Escape from the British Museum, which tell ...
【politics】
Read more
Popular articles
- Pope trip to Luxembourg, Belgium confirmed for September, 2 weeks after challenging Asia visit
- Cultural conference opens in Xinjiang
- Experiencing traditional crafts at China International Fair for Trade in Services
- Creative accounting
- Investigators return to Long Island home of Gilgo Beach serial killing suspect
- The Forbidden City hosted the Tea&World
Latest articles
Britain's new bonkers EV: Callum Skye is an £80k electric buggy built in Warwickshire
Ancient answers to modern questions
Experiencing traditional crafts at China International Fair for Trade in Services
Xi Focus: Xi Calls for Giving Better Play to Constitution's Role in Governance
Supreme Court rejects an appeal from a Canadian man once held at Guantanamo
Special performance for artists with Plum Performance Award and Peony Award was held
LINKS
- Full Text of Xi Jinping's Keynote Speech at China
- Xi's Vision Injects Confidence, Wisdom into Forging Closer China
- Xi Story: Gaining a Deeper Understanding of Chinese Civilization at Yin Ruins
- Borders no boundary to protecting cranes
- Xi Urges Efforts to Promote Garbage Sorting as New Fashion for Low
- Xiconomics: How China
- Tourists enjoy kiteboarding in Hainan
- Xi Urges Efforts to Promote Garbage Sorting as New Fashion for Low
- Xi Sends Congratulations to 32nd Arab League Summit
- Peng Liyuan Meets with DRC's First Lady