China’s top leaders on Thursday pledged more stimulus measures to shore up the country’s economy, building on steps they have taken in recent months to bolster growth.
At an annual gathering of the Chinese Communist Party and the cabinet, led by the country’s top leader, Xi Jinping, officials agreed that the government should allow a bigger budget deficit, borrow more and cut interest rates, the state television broadcaster said on Thursday.
The statements suggest a willingness by Beijing to take more aggressive steps to increase spending, part of a shift that began in September to turn around years of weak consumer demand, lackluster growth and declining prices.
China “will need to maintain economic growth and maintain overall stability of employment and prices next year,” the state broadcaster said at the conclusion of the two-day Central Economic Work Conference, which sets the economic agenda for the upcoming year.
The Chinese government typically uses the conference to signal priorities that could translate into policy action in the next year, and to agree on budget details that will be announced at the spring legislative session.
Earlier this week, the ruling Politburo gave a rare public acknowledgment that Beijing needed to take a stronger approach on the economy, when it indicated it would be more willing to lower interest rates. It was the first time that China’s leaders had eased their stance on monetary policy since the aftermath of the global financial crisis 14 years ago.
