BEIJING: Another round of bad Chinese economic figures is raising pressure on Beijing to loosen the fiscal spigot further and even dole out shopping vouchers to get growth back towards this year's target of roughly 5 per cent.
People stand at a shopping mall near the CCTV headquarters and China Zun skyscraper, in Beijing's central business district , China on Sep 7, 2023. BEIJING: Another round of bad Chinese economic figures is raising pressure on Beijing to loosen the fiscal spigot further and even dole out shopping vouchers to get growth back towards this year's target of roughly 5 per cent.
"The current economic performance remains behind target, necessitating immediate and significant policy intervention," said Carlos Casanova, Asia senior economist at Union Bancaire Privée . This might require the government to widen the budget deficit to 4 per cent of gross domestic product from the planned 3 per cent, he said.
"The Chinese economy, given its size, cannot run on manufacturing and exports alone," Societe Generale analysts wrote in a note on the latest data., Chinese e-commerce giants have had to resort to heavy discounting and promotions to attract shoppers, squeezing margins across the retail sector. China Daily, citing three economists from government-backed think tanks, said the government"should consider additional direct support to consumers worth at least 1 trillion yuan — either cash or vouchers".Such a step"would necessitate expanding this year's deficit ratio or approving additional special treasury bonds", the article said.
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