Thursday 30 May 2024
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(Jan 8): China’s economic growth will return to its “normal” path as Beijing provides more financial support to households and private companies to help them recover after the nation ended its zero-Covid policy.

The world’s second-largest economy is expected to quickly rebound because of the country’s optimised Covid-19 response and after its economic policies continue to take effect, Guo Shuqing, party secretary of the People’s Bank of China, said in an interview with People’s Daily published on Sunday.

“The key to the economic recovery is to convert current total income to consumption and investment to the largest possible extent,” Guo was quoted as saying in the interview, which was also carried on the Chinese central bank’s official WeChat account.

Guo pledged to use financial policies to boost the income of people affected by Covid outbreaks to meet basic demands and enhance consumption. The financial sector should also develop products that will encourage home and car purchases, he said.

He also vowed to ensure monetary policy was more in favour of private firms to support effective credit growth and to expand their access to funding with more backing for IPOs and bond issuance.

The Chinese yuan, Guo said, will continue to fluctuate but will continue appreciating in the mid to long term. Meanwhile, the country needs to stay on high alert for imported inflation even as domestic prices remain stable, he said.

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