FX.co ★ China pledges to ramp up stimulus measures to boost economy

The reliability of China’s economic reports has long been in question. China is believed to deliberately misreport economic data to make it look better than it really is. For instance, GDP growth figures are believed to be overstated to support the narrative of the ever-growing Chinese economy. But this time, the scale of the economic slowdown has become too large to hide. Thus, Beijing has officially announced the introduction of fiscal stimulus measures to support the struggling economy. According to Zheng Shanjie, the chairman of the National Development and Reform Commission, China has expanded its stimulus measures for the second half of 2023 to offset the economic downturn. Despite an overall pessimistic tone, the official underscored that the main objectives set by the government were being accomplished, and the country's economic growth rate remained one of the best in the world. At the same time, it is evident that China’s actual economic growth is far from being robust, especially given that its economy has been largely buoyed by huge government spending. Zheng indirectly admitted this fact by saying that the current “growth momentum is weak and the foundation for sustainable recovery is not solid.” The official pledged to continue with stimulus measures throughout the second half of the year to bolster domestic demand and boost household income. In an attempt to soothe markets, Chinese authorities have also promised to utilize government incentives more efficiently to support the ailing economy.