Wednesday, December 6, 2023

China must improve policy to support economy: former central bank chief

BEIJING, Sept 20 (Reuters) – China needs to step up its economic support policy and promote reforms to meet its annual growth target of around 5%, said Yi Gang, former governor of the People’s Bank. of China (PBOC), in a statement .statements published on Wednesday.

China’s factory production and retail sales grew at a faster pace in August, but a drop in property investment threatened to undermine a raft of support measures that showed signs of strengthening. on parts of the faltering economy.

“We must step up macroeconomic policy changes, effectively support the expansion of domestic demand and promote a healthy economic cycle,” said Yi, deputy head of the Economic Committee of the Chinese People’s Political Consultative Conference. Conference, told the state media (CPPPC).

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This will help China achieve its 2023 growth target of around 5%, he said.

The government must act to boost weak private business confidence and address local government debt risks that are hindering local authorities’ ability to support growth, Yi said.

“In the long term, affected by factors such as the slowdown in real estate and an aging population, global demand for home purchases may decline to a new level,” he said.

The central bank should use structural policy tools to support “solid and improved housing demand,” he added.

He also advocated reforming the residence permit system, or “hukou”, and improving the social welfare of the millions of migrant workers who have joined the cities, helping to boost consumption.

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