Chinese Premier Li Qiang on Monday called for more forceful counter-cyclical policy action and a holistic, objective reading of the nation’s economic situation as authorities confront indications of weaker growth momentum. The comments were made during a gathering with experts and entrepreneurs, according to a meeting readout broadcast by state television CCTV.
Officials are preparing to publish second-quarter gross domestic product figures next week. The timing of the data release adds urgency to the government’s efforts to assess and, if necessary, reinforce policy measures.
During the meeting, Li said: "It is important to take a comprehensive and objective view of the current economic situation - fully recognising the achievements made while remaining clear-eyed about the problems." The Premier emphasised that gauging both progress and challenges was essential to shaping an appropriate response.
Analysts surveyed ahead of the upcoming data expect growth to decelerate to 4.5% in the April-June quarter, down from 5.0% recorded in January-March. At that pace, the economy would sit at the lower boundary of Beijing's official full-year growth target range of 4.5% to 5.0%.
Li stressed that performance in the second half of the year would be decisive for achieving the year's economic aims. He urged continued strategic determination in pursuing high-quality development and called for a stepped-up programme of counter-cyclical adjustment. The Premier said existing policies should be deployed fully and effectively, and he recommended studying and preparing additional measures in advance to help consolidate economic momentum.
The readout aired by CCTV said Li also highlighted the need to stabilise employment and to unlock the potential of domestic demand. Those objectives form part of the broader effort to shore up activity and support growth drivers within the economy.
Market participants are monitoring an expected late-July Politburo meeting for signals on any fresh stimulus that could shape policy through the remainder of the year. Analysts polled noted that they do not expect aggressive intervention unless the slowdown becomes noticeably steeper.
Contextual note: The information above is based on the meeting readout broadcast by CCTV and on analyst projections referenced in that reporting. No additional measures or announcements were detailed in the readout beyond calls to prepare and consider further policy options.