China’s economy faces challenges, pledges to address ongoing housing crisis
Date
9/29/2024 3:09:48 AM
(MENAFN) Chinese President Xi Jinping and top leaders acknowledged on Thursday that the world's second-largest Economy is facing new challenges and pledged to address the ongoing housing crisis, according to state media reports. This comes as Beijing introduces new measures to support its economy, aiming for a 5 percent growth target in 2024, which analysts view as optimistic due to the economic headwinds.
During a Politburo meeting, the Communist Party’s top decision-making body gathered to evaluate the current economic landscape. According to the Xinhua news agency, President Xi emphasized the need to confront emerging problems and urged a comprehensive and calm assessment of the economic situation to restore confidence. The Politburo stressed the importance of making policies more focused and effective in order to revive the economy.
Leaders also promised to address public concerns over economic difficulties and outlined plans to adjust policies related to housing. Xinhua reported that Beijing would relax restrictions on home purchases, reduce interest rates on existing mortgages, and promote a new model for real estate development, signaling forthcoming support for the housing sector.
Julian Evans-Pritchard, head of China at Capital Economics, noted that these announcements hint at imminent economic support, though specifics remain unclear. The meeting minutes suggested that larger interest rate cuts might be on the horizon, but noted that these cuts alone may not significantly boost domestic demand due to low inflation and reduced private sector debt.
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