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AlwaysFree: China Seen Adding Fiscal Stimulus In Early 2022


Economists expect China to roll out more fiscal stimulus in early 2022 to counteract growth pressures and stabilise the economy. The prediction came after the Communist Party vowed to prioritise stability, front load policies, and maintain an appropriate and flexible monetary stance. Economists said fiscal policies would play a main role in supporting China’s growth next year, as the government is likely to continue its crackdown on the property sector.

China’s economy has slowed in the past few months due to the worsening property market slump, tepid consumption growth, and multiple COVID-19 outbreaks, which caused businesses and consumers’ confidence to deteriorate. This year, China’s economic policy has been focusing on minimising financial risks and reducing debt in the economy.

Economists predict China’s economic growth to slow to 3.1% in the final quarter of the year, compared to 7.9% in the second quarter and 4.9% in the third. They expect policymakers to do more to ensure growth of around 5%. According to them, China will start next year with “conventional” fiscal and monetary tools such as accelerating infrastructure spending and cutting banks’ reserve requirements. If these measures turned fruitless, policymakers would likely loosen curbs on the property market and local government debt. China is also expected to guide banks to issue loans faster.

Tags: All Products,AlwaysFree,Asia Pacific,China,English,NEA

Published on December 14, 2021 10:38 AM (GMT+8)
Last Updated on December 14, 2021 10:38 AM (GMT+8)