Image: Reuters Berita 24 English - China will promptly release the tools in its policy reserve to address new economic issues, as COVID- Emp...
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| Image: Reuters |
Berita 24 English - China will promptly release the tools in its policy reserve to address new economic issues, as COVID- Employment and price stability are threatened by 19 breakouts and hazards related to the Ukraine crisis, a state planner official warned on Tuesday.
According to recent data, activity in the second-largest economy in the world is starting to pick up after widespread COVID-19 lockdowns in April and early May slowed growth. However, challenges like a slump in the real estate market, weak consumer spending, and the possibility of additional COVID outbreaks continue.
According to Ou Hong, the National Development and Reform Commission's deputy secretary general, the government would carry out its current assistance programmes while enhancing its toolkit for formulating policies. Depending on the situation, new policy support can be implemented quickly, he said.
"We have the ability to cope with all types of unforeseen developments to ensure steady, healthy, and sustainable economic development," Ou continued. "We are totally confident in our ability to overcome the severe problems in economic operation."
Ou recognised that the COVID-19 outbreaks and the Ukraine situation since March have raised unemployment and inflation while posing a threat to growth.
Vice director at NDRC Zhao Chenxin stated during the same briefing that China would not use flood-like stimulus, a position the government has reaffirmed in the past owing to debt-related worries.
According to People's Bank of China Governor Yi Gang, China's monetary policy will remain accommodating to assist the country's economic recovery.
China's cabinet launched a series of steps in May to address the economic harm caused by COVID. These actions covered fiscal, banking, investment, and industrial policy.
The measures show how determined the government is to support the country's economy, but economists say a 5.5 percent growth target will be challenging to hit if China maintains its pricey zero-COVID control policy.
