Current location:opinions >>
More efforts called on to energize consumption
opinions33975People 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.“International Interface news portal”。http://timor-leste.triple-v.org/html-3d099918.html
Related articles
Siblings trying to make US water polo teams for Paris Olympics
opinionsWALNUT, Calif. (AP) — Chase Dodd started swimming when he was just a kid. Once he began playing wate ...
【opinions】
Read moreBeijing court jails Chinese
opinionsChinese-Canadian ex-pop star Kris Wu has been jailed for 13 years after being found guilty of rape, ...
【opinions】
Read moreJurgen Klopp insists Liverpool's 2
opinionsLiverpool lost their lead in the Premier League title race on Sunday, but manager Jurgen Klopp insis ...
【opinions】
Read more
Popular articles
- Georgia Republicans choose Amy Kremer, organizer of pro
- Cleanup of homeless encampment along Santa Ana River hits a snag in Newport Beach
- 'It's Rory Delass!' Republic of Ireland's Megan Campbell wows fans with her catapult 38
- Venezuelan beauty queen Wilevis Brito, 24, dies following surgery on jaw and lip
- Everybody may love Raymond, but Ray Romano loves Peter Boyle
- Cleanup of homeless encampment along Santa Ana River hits a snag in Newport Beach
Latest articles
Siblings trying to make US water polo teams for Paris Olympics
Erik ten Hag admits he is relieved Harry Maguire stayed at Man United amid injury crisis
Forget the World Cup, Euros or Super Bowl
Premier League clubs vote unanimously for major new change to the offside rule
What's next for Iran after death of its president in crash?
Football's ultimate big
LINKS
- Universal Pictures teases ‘Wicked’ and announces ‘Five Nights at Freddy’s 2’
- How major US stock indexes fared Friday, 4/12/2024
- Ancient stone tools found in Ukraine date may be oldest in Europe
- Payton Pritchard scores a career
- Russia aborts planned test launch of new space rocket
- Jailed Vietnamese dissident Pham Doan Trang to be honored by PEN America
- Book Review: Hampton Sides revisits Captain James Cook, a divisive figure in the South Pacific
- Movie Review: Bill Nighy, Michael Ward shine in Netflix’s Homeless World Cup crowd
- Odysseus moon lander sends new images in its last hours
- 2025 Oscars: Academy Awards announces March 2 date