The economy China's Politburo wants to boost the economy
China's economic situation is bleak. Experts believe that some of the goals set by the Communist Party will be difficult to achieve. The party's powerful leadership circle now wants to tackle the problems.
26.09.2024, 09:55
SDA
China's leadership has called for further support for the ailing real estate market, sufficient fiscal spending and an improvement in sluggish consumption amid the tense economic situation. In addition, the top cadres of the Communist Party emphasized during a meeting chaired by state and party leader Xi Jinping that the economic targets for this year must be achieved, as China's official news agency Xinhua reported.
The Politburo, the inner leadership circle of the Communist Party, had met. The report did not give exact figures or plans for implementing the demands. However, the statements are likely to be significant, as the government has admitted to economic problems. The party appears to be sticking to its self-imposed economic growth target of around five percent for this year, while experts recently see the target increasingly at risk.
Real estate, bonds, income
According to the report, the party specifically wants to improve its real estate portfolio and increase investment in construction projects desired by the government. According to the report, China wants to "make better use of the role of state investment" with government bonds. The party's center of power also called for consumption to be boosted and for people in the middle and lower income brackets to earn more.
Economic data from the world's second-largest economy has recently given experts cause for concern. China's central bank announced during the week that it would lower interest rates for housing loans and reduce the rate for minimum cash reserves at banks. China wants to free up more funds for the financial markets. This is because the crisis in the real estate sector continues to contribute to sluggish consumption among many consumers, who are holding on to their money rather than spending it.
Unemployment problem
On top of this, many people are looking for work. According to official figures, the latest unemployment rate in the 16-24 age group rose to 18.8 percent. On Wednesday, the State Council, China's government cabinet, called for the creation of more "high-quality jobs" and new positions in the digital economy. Better training should also combat structural unemployment. The report did not provide any specific details.
