China Weighs Economic Boost, No Stimulus Yet

Finance Minister Lan Fo'an hinted at potential economic boosting strategies for China but refrained from announcing a major stimulus plan. While China's economy struggles post-COVID, steps like increased pensions haven't spurred growth. Lan suggests incremental measures, pointing to ample room in the budget for debt increases.

In a recent announcement, Finance Minister Lan Fo'an revealed that the Chinese government is exploring additional methods to invigorate its economy. However, he refrained from disclosing specific details or offering a substantial new stimulus plan that market analysts and investors had anticipated.

Lan's statements suggested that the door remains open for future economic support initiatives but withheld information on what such measures might entail. During a news conference, he mentioned ongoing discussions about policy tools that are in the pipeline, emphasizing the government's considerable fiscal capacity to raise debt and expand the deficit if needed.

Despite removing COVID-19 restrictions by the end of 2022, China's economy remains sluggish, plagued by reduced hiring and wages, and a flagging property market eroding consumer confidence. While prior measures like increased pensions and consumer subsidies have been implemented, these have not significantly reignited economic growth. The finance minister indicated that forthcoming policies would be incremental, targeting areas such as student scholarships, banking capital support, and aid for debt-laden local governments.

(With inputs from agencies.)