To ensure the macroeconomy operates smoothly in the fourth quarter, China’s local governments have released a series of policies for stabilizing growth, such as stimulating consumption, expanding investment and promoting industrial development, Securities Daily reported.
Central China’s Hubei province proposed to boost consumption of automobiles and home appliances and promote the recovery of the tourism industry in a move to give full play to the role of domestic demand in driving economic growth.
Sichuan province in southwestern China planned to carry out expos, shopping activities and food festivals to promote consumption, boost sales of new energy vehicles and stabilize the property market.
Dong Zhongyun, chief economist of AVIC Securities, said the country’s consumption recovery has been facing pressure since October due to the resurgence of COVID-19. Under these circumstances, policy adjustments are needed to further offset negative impacts.
If relevant policies can effectively improve people's incomes and maintain their future expectations, consumption in the fourth quarter will gradually recover, Dong said.
Some provinces also published investment plans for key projects and accelerated project construction in the fourth quarter.
On Nov 25, a total of 100 key water conservancy projects in Yunnan started construction, with investment amounting to 51.5 billion yuan ($7.19 billion).
Anhui province issued the second set of key project investment plans for 2022 on Nov 23, including 1,566 projects with total investment of 1.01 trillion yuan.
Feng Lin, senior analyst of the research and development department at Golden Credit Rating International, said the annual growth rate of infrastructure investment is expected to reach 12 percent, driving GDP growth by 1.2 percentage points.
Promoting sustained and steady recovery of the industrial sector is also one of the important aspects for economic growth.
Industrial stability is the foundation for economic stability, and a basic requirement for ensuring people's livelihood in China, Dong said.
A prerequisite for boosting the industrial economy is to minimize the impact of the pandemic on economic activities as soon as possible and keep the domestic circulation running smoothly, he added.
To ensure steady growth, income distribution is of vital importance, and the key lied in raising the income of middle- and low-income groups, said Song Xiangqing, vice-president of the School of Government at Beijing Normal University.
At the same time, local governments should focus on price controls and resolutely contain sharp rises in the prices of daily consumer goods, according to Song.