Current location:Cultural Current news portal > business
More efforts called on to energize consumption
Cultural Current news portal2024-05-21 10:32:27【business】7People 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.
Address of this article:http://fiji.camilleandconfettis.com/news-3d099918.html
Very good!(163)
Related articles
- Kosovo prepares a new draft law on renting prison cells to Denmark after the first proposal failed
- Best quotes from Harry and Meghan's shocking Oprah interview
- How middle
- Amazon ordered to pay $525million to tiny Chicago
- Independent UN experts urge Yemen’s Houthis to free detained Baha'i followers
- Netflix fans are left STUNNED by the streaming site's 'most UNHINGED' show yet
- Prince Harry WILL attend King Charles' Coronation but not Meghan Markle
- NZ to give $6m in humanitarian aid to Sudan and Gaza
- Nadal returns to Roland Garros to practice amid doubts over fitness and form
- Thierry Henry predicts Phil Foden's stunning goal in 3
Popular articles
Recommended
French sports minister calls for sanctions after Monaco player tapes over anti
Through the palace keyhole... by those who were there
EDEN CONFIDENTIAL: John Lennon's son Julian to sell his £22 million 18th
Police build a case against Lego gang: Thieves steal $300,000 worth of high
Georgia Republicans choose Amy Kremer, organizer of pro
Kristin Smart's murderer Paul Flores is stabbed in California jail
Busy Philipps' look
Woman is branded a 'bad person' after insisting pet owners should not take on 'life
Links
- Could your doctor be GOOGLING you? Calls for crack down on unspoken habit
- EMILY PRESCOTT: It's a power meeting! Eco Ellie Goulding's cosy chat with Ovo energy boss
- Iran's hardliners employ female 'hijab enforcers' to spy on bare
- Kentucky Derby: What it's like at Churchill Downs for 150th Run for the Roses
- Brazilians wait on their roofs to be rescued by the military as death toll rises to 57 in record
- Ryan Gosling says his and Eva Mendes' two daughters 'don't care' that they're A
- Biden has rebuilt the refugee system after Trump
- Jose Ramirez's slump
- Lemi Berhanu Hayle wins Prague international marathon, Bedatu Hirpa Badane claims women's race
- A look at commencement ceremonies as US campuses are roiled by protests over the Israel