Source: www.fibre2fashion.com
More policy measures to expand domestic demand are needed to strengthen China's economic recovery that gained momentum in December as signs of souring exports and employment situation emerge, according to experts. Though manufacturing activity accelerated in December, contraction in export orders and staff levels within the sector added a cautionary note.
China's export growth, though expected to maintain some resiliency, may nevertheless decelerate this year as overseas demand softens amid the tapering of stimulus packages in major economies, underlining the necessity to bolster domestic demand in China, Zhang was quoted as saying by a government-controlled media outlet.
"It is sensible for China's central bank to reduce policy interest rates as soon as possible to boost market demand for investment and consumption," he said, adding that fiscal policy should become more proactive in spurring infrastructure investment.
Policymakers, therefore, are expected to take stabilizing the economy as a key priority this year, Wang said, adding that policy focus should be given to bolstering employment and amplifying targeted support for small and medium enterprises, the media report added.
