China faces significant economic challenges, with top officials acknowledging the need to boost employment and stabilize the property market. Youth unemployment has reached an unprecedented 21.3% in mid-2023, while home prices have been falling for months. Experts, including longtime China economist Michael Pettis, suggest that Beijing might turn to demand-side stimulus measures in the form of a one-off income transfer to the household sector in Q2 or Q3, likely funded by a Beijing bond deal. This approach, however, contrasts with the Chinese Communist Party's (CCP) historical disdain for 'welfarism,' despite calls for common prosperity. The discussion around China's economic strategies comes as the country sets an ambitious growth target for 2024, with some analysts doubting the feasibility of reaching a new 5% GDP target without significant policy shifts.
Chinese officials need to consider direct support to households in order to spur economic growth, according to longtime China economist Michael Pettis, floating a proposition Beijing has been reluctant to embrace. https://t.co/8UvogPIZCE
Chinese officials need to consider direct support to households in order to spur economic growth, according to longtime China economist Michael Pettis, floating a proposition Beijing has been reluctant to embrace. https://t.co/vTfMnDnKO6
In the new edition, my op on why China’s new 5% GDP target is out of reach unless one or more of 3 things happens 1/4 https://t.co/rPf9WDWuIX
I've written a bit about the CCP's disdain for "welfarism" as mentioned several times in XJP's call for common prosperity. But I agree with @michaelxpettis that this doesn't rule out demand-side policies to revive the economy. But I also believe that the party will only enact 1/5 https://t.co/O2WFLiQx9M
Watch | Why China's 2024 Growth Target Is Ambitious @SakshiBajaj19 reports https://t.co/ye7ukcMgAd
In my latest piece I explain why I expect Beijing to turn to demand-side stimulus in Q2 or Q3 in the form of a one-off income transfer to the household sector, most likely to be funded by a Beijing bond deal. https://t.co/GSkUkKfCGi
China needs to do more to boost employment and stabilise its property market, top officials acknowledged on Saturday. Youth unemployment hit an unprecedented 21.3% in mid-2023, while home prices have in turn fallen for months. https://t.co/R7hKwjGERS