China announced a massive $325 billion fiscal support plan to boost its economy over the next three months, the largest aid program since the global financial crisis. The stimulus includes measures to strengthen banks, stabilize the property market, and increase consumer spending. Additional treasury bonds and special bond funds are being utilized to support various sectors of the economy.
The government plans to issue special bonds to enhance state-owned banks’ capital, lower debt ceilings for local governments, and stimulate infrastructure spending to protect jobs. Despite aiming for five percent growth this year, China faces economic uncertainty and low consumption levels, prompting policymakers to implement rate cuts and housing market adjustments.
Major banks in China have agreed to lower interest rates on existing mortgages to stimulate lending and support the government’s call for economic revitalization. The People’s Bank of China has also taken steps to increase liquidity in markets to promote stability and growth.
Overall, China’s aggressive stimulus package aims to revive the economy and counter the impact of global economic challenges.
© 2024 AFP