BEIJING, 31st July, 2023 (WAM) — Chinese authorities issued 20 new measures to boost domestic consumption on Monday, encompassing expanded real estate and auto sales support. These policies underscore China’s increasingly determined effort to maintain economic recovery and achieve annual development goals. In an executive meeting held by the State Council, China’s cabinet, a call was made for a more vigorous study of counter-cyclical adjustments and policy reserves. The meeting emphasised the necessity of introducing new policy measures that more effectively reflect the macroeconomic pertinence, synergy, and combination, as well as stimulating the vitality of private investment and promoting growth in strategic emerging industries.Chinese newspaper Global Times reported. These swift policy actions, orchestrated by the National Development and Reform Commission (NDRC), China’s leading economic planning agency, echo a recent meeting that highlighted efforts to stabilise growth. Analysts believe these supportive measures are vital in improving market expectations and boosting domestic demand. Combined with measures to bolster the private economy, these steps should ensure a steady economic recovery in the second half of 2023. One key focus of the newly released measures is to stabilise the consumption of big-ticket items, such as houses and cars. To support first-time home buyers and those looking to improve their living standards, the NDRC reiterated its commitment. Specific pledges include enhancing the mechanisms and support policies for housing security, increasing the supply of affordable rental properties, and addressing the housing concerns of new urban residents, young people, and other groups facing housing difficulties. The NDRC’s measures coincide with similar initiatives by other Chinese authorities and local governments designed to invigorate the real estate market. During a recent symposium, Ni Hong, Minister of Housing and Urban-Rural Development, urged for lower down payment requirements and mortgage rates for first-time homebuyers, tax breaks for upgrading and recognising buyers who have paid off previous mortgages as first-time purchasers. Another key component of domestic consumption is auto sales, accounting for roughly 10 percent of total consumption. The NDRC on Monday prohibited all regions from implementing new restrictive measures on car purchases and encouraged existing areas with restrictions to adjust these limitations in line with their local conditions. Analysts predict more timely measures, especially from financial and monetary authorities, will follow to further increase the effectiveness of Monday’s measures in boosting consumption. As China aims for a steady economic recovery in the second half of the year, several ministries have introduced measures to stimulate consumption and other key growth drivers. Looking ahead, more policy measures are expected to further enhance consumption, investment, and foreign trade, among other economic growth drivers in China. As the world’s second-largest economy is targeting a growth rate of about 5 percent in 2023, this ambitious goal would once again position China as the bright spot of the global economy.
Source: Emirates News Agency