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China Needs More Proactive Fiscal Policy - Guan Tao

CHINA PRESS
MNI (BEIJING)

Policymakers should maintain a proactive fiscal-policy stance in H2 to boost the economy, which currently operates at 73% of utilisation capacity, according to Guan Tao, a former director at the State Administration of Foreign Exchange. Guan said leaders in Beijing should focus on repairing household balance sheets, in particular for lower income groups who had suffered the most from Covid-19 disruption. Guan noted household’s had not translated their Covid-era savings pool into consumption as hoped, because lower income families had depleted their savings during the pandemic era and higher income households had directed a large portion of "revenge" spending abroad. Banks saw an increase in deposit savings in Q1 as lower income groups re-establish their firewall savings.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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