According to Guo Shuqing, party secretary of the People’s Bank of China, in an interview with the People’s Daily published on January 8, the world’s second-largest economy is anticipated to quickly recover as a result of the nation’s optimised COVID-19 reaction and after its economic policies continue to take effect. Guo was reported as stating in the interview, which was also posted on the official WeChat account of the Chinese central bank, that the key to improving the economy is to transfer current total income to investment and consumption to the greatest feasible extent.
As Beijing gives households and private businesses greater financial support to aid in their recovery after the country stopped its COVID Zero programme, China’s economic growth will resume its normal course.
In order to help those impacted by COVID outbreaks meet their fundamental needs and increase their consumption, Guo promised to employ financial strategies to increase their income. He added that the financial industry ought to create goods to promote the buying of homes and cars.
Additionally, he pledged to make sure that monetary policy was more favourable to private companies in order to facilitate efficient credit development and increase their access to finance by providing more assistance for IPOs and bond issuance. Guo predicted that the Chinese yuan would continue to fluctuate but appreciate over the medium to long term. Even while local prices remain constant, the nation must remain extremely vigilant about imported inflation, he warned.