MNI Press Digest Jan 26: Consumption, Spending, Guangdong GDP

The following lists highlights from Chinese press reports on Tuesday:

China's local governments should focus on expanding domestic consumption and encouraging innovation so the economy can reach GDP growth targets of 6%-10%, the state-run Economic Information Daily reported. Local governments should adapt to the normalization of epidemic prevention, focus on developing the digital economy and boost investment through infrastructure programs, the newspaper reported citing Gao Ruidong, chief economist from Everbright Securities. The consumption potential of rural areas should be raised through increasing employment, public consumption and social security, Gao told the newspaper.

China should maintain its fiscal expenditure including maintaining the scale of local government special bonds, according to a report by the China Finance 40 Forum. Monetary policy should be maintained at the current neutral level, while the central bank should pay close attention to exposure to credit risks, the report noted. China should also promote structural reform in medical care and education, and increase housing and land supply in big cities, the report urged.

The GDP of China's southern Guangdong province rose 2.3% last year to CNY 11 trillion, ahead of the economies of Russia and South Korea, The Paper reported citing local statistics. Eastern Jiangsu was the second province to exceed CNY10 billion in 2020, the newspaper said. China's total GDP last year was CNY101 trillion, an increase of 2.3% over 2019 in comparable prices, the newspaper reported.