China plans to expand domestic demand so that it plays a greater role in economic growth as the country recovers from Covid, state media reported, saying external conditions have become “complex and grave.”
(Bloomberg) — China plans to expand domestic demand so that it plays a greater role in economic growth as the country recovers from Covid, state media reported, saying external conditions have become “complex and grave.”
The plan’s main goal is to stimulate consumption and investment in the years to 2035, broadcaster CCTV said Wednesday. Xinhua News Agency published the first chapter of the plan, which warned of global economic and geopolitical uncertainties and was issued by the Central Committee of the Communist Party of China and the State Council.
China’s ratio of investment to gross domestic product — among the highest in the world — has been kept in a “reasonable range,” according to the release. Some organizations such as the International Monetary Fund have called for the share to fall.
Xinhua didn’t publish the subsequent chapters or disclose further details.
China Decides Against Postponing Key Economic Policy Meeting
Earlier Wednesday, the news agency ran a commentary that said China is projected to “steadily resume economic growth and infuse new vigor into the global economic recovery.” It also said a series of stimulus packages have been introduced that will, among other things, improve consumer expectations and boost the confidence of international investors.
–With assistance from Tom Hancock.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
