Current location:world >>
More efforts called on to energize consumption
world116People have gathered around
IntroductionA pedestrian walks past the People's Bank of China, the country's central bank, in Beijing on May 22 ...
A pedestrian walks past the People's Bank of China, the country's central bank, in Beijing on May 22. [PHOTO by JIANG QIMING/CHINA NEWS SERVICE]
Economists suggest policy support, voucher issuance to boost spending confidence
Though the recent decline in deposit rates is seen as part of the country's efforts to energize consumption, economists have divided thoughts on how far the move will push consumption. Going forward, experts are calling for more forceful and prompt measures to boost consumer confidence.
Gao Ruidong, chief macroeconomist at Everbright Securities, said that the current high level of deposits and weak household sector loans are primarily due to a decline in household risk appetites and their tendency toward precautionary savings against uncertainties.
"Ultimately, the restoration of consumer confidence can only rely on improvements in employment and income expectations," he said.
A research report issued by GF Securities on May 28 showed that the tendency of households to keep their money in saving accounts instead of spending it is still surging. The value of outstanding household bank wealth reached 26.6 trillion yuan ($3.71 trillion) as of May 26, pointing to an increase of 400 billion yuan compared to April 30. Such value had already seen a significant increase of 1.2 trillion yuan in April.
Robin Xing, chief China economist at Morgan Stanley, said it will be challenging to push for notable consumption momentum and more policy support is needed.
"Structurally, consumption growth is unlikely to return to the pre-COVID-19 levels. We expect the potential growth for private consumption will be 4.8 percent for the year 2024, which is slightly lower than pre-COVID-19 trend," he said, adding that the current uncertainty in employment is part of the reason behind the bumpy recovery in consumption.
More direct and prompt policy support is therefore required to fuel the consumption market and more effectively boost this year's growth, experts said. Gao suggested that a large-scale government issuance of consumer vouchers could have a more direct impact on the retail spending than a lower deposit rate.
"Since the employment situation among young people remains severe and the willingness of spending among households remains unstable, the consumption sector may see an uneven recovery this year," he said. "We believe that a large-scale issuance of consumption vouchers is feasible to quickly drive growth."
He suggested that consumption vouchers worth 300 billion yuan be distributed to households.
"Such an amount of vouchers will generate an additional 1 trillion yuan in consumption, contributing to a 0.62 percentage point increase in GDP growth," Gao said.
He said that the stimulus effect of issuing consumption vouchers can be significantly higher in underdeveloped regions than in developed regions. In addition, the issuance of these coupons can lean more heavily toward low-income and unemployed groups, who can use the coupons for daily essentials in retail and living.
Targeted consumption vouchers can be distributed in sectors like dining, accommodations, tourism and autos, catering to the specific consumption needs of different groups," Gao added.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“Earth Encounters news portal”。http://egypt.elfsignes.com/news-79e999886.html
Related articles
Liverpool confirms Arne Slot as Jurgen Klopp's replacement
worldArne Slot will take on one of the most daunting challenges in soccer by replacing Jurgen Klopp as Li ...
【world】
Read more'Mother Wu' Remains Loyal to Her Island Home
worldContact Us HomeNewsHighlightACWF NewsSocietyWom ...
【world】
Read moreCentral gov't lauds passage of safeguarding national security bill in HKSAR
worldBEIJING, March 19 (Xinhua) -- The Hong Kong and Macao Affairs Office of the State Council published ...
【world】
Read more
Popular articles
- Hollywood star Shia LaBeouf is spotted on the streets of Gavin and Stacey's hometown Barry
- Feature: Guardian of Marine Species in China's Hainan
- Pic Story of Flower
- Taiwan Flutist Living Her Best Life in Fujian
- Amtrak train hits pickup truck in upstate New York, 3 dead including child
- Taiwan Flutist Living Her Best Life in Fujian
Latest articles
Travis Kelce downs whiskey shot on slice of bread at Kelce Jam without Taylor Swift
Sports Geography
Miao Embroiderer Takes Ethnic Intangible Heritage to World Stage
Rural Woman Helps Villagers Attain Wealth by Growing Vegetables
French sports minister calls for sanctions after Monaco player tapes over anti
In Pics: Women's Basketball Club in NW China's Xinjiang
LINKS
- It's (almost) Met Gala time. Here's how to watch...
- Police break up pro
- Zendaya wows in a glamorous vintage backless dress as she attends Anna Wintour's star
- At least 10 casualties reported in a hospital knife attack in China
- Chinese cars gain popularity in Botswana
- Vietnam celebrates 70 years since Dien Bien Phu battle that ended French colonial rule
- Malaysian government defends presence of companies that supply weapons to Israel at defense show
- Closing prices for crude oil, gold and other commodities
- Chinese cars gain popularity in Botswana
- Zendaya's Met Gala style: Her biggest and boldest fashion statements so far