Posted 2/26/2024, 2:00:22 PM
CICC Urges China to Provide More Fiscal Stimulus Directly to Citizens to Spur Spending
- Chinese investment bank CICC calls for more fiscal stimulus like cash transfers to boost consumer spending and economic growth
- CICC says US fiscal support during pandemic was more effective than China's bank lending, as money went directly to people
- China's monetary easing has not spurred investment as much gets deposited back into banks
- CICC estimates China needs additional 5-6 trillion yuan fiscal stimulus in 2023 to boost economy
- Economists argue direct fiscal transfers like cash coupons to citizens would be most effective to encourage consumer spending
