China At the annual economic planning meeting, he decided to increase spending to accelerate growth in the world’s second-largest economy, local newspapers reported.
This was reported by the official Xinhua news agency President Xi Jinping Led the meeting, whose objectives were to eliminate risks and guarantee stability.
According to the report, the meeting concluded that “effective fiscal policy should be intensified appropriately and its quality and effectiveness should be improved”.
Recent calculations show that Chinese economy It grew by 5% year-on-year this year, a rate in line with the government’s target.
But the recovery was short-lived after strict restrictions due to the coronavirus pandemic A recession forecast By 2024.
The ability of the ruling Communist Party to steer the economy through difficult times has many implications for regional and global development.
A few days ago, the government reported that exports grew in November for the first time since April and said demand could pick up after months of decline.
Some economists questioned whether the increase, driven mainly by auto and shipping exports and the Christmas season peak, would continue for long.
The report offered few concrete details on how China’s leadership plans to deal with mounting debt and resolve a crisis in the key real estate sector after dozens of businessmen defaulted on loans.
Although it was noted that the Chinese government should “prevent and diffuse risks in critical areas and firmly protect the bottom line against systematic risks.”
Moody’s earlier downgraded China’s sovereign debt as the housing crisis seeped into local governments and private funds.
It also downgraded several Chinese banks and insurance companies.
With information from AP.