China will increase pensions and medical subsidies for urban and rural residents in 2025, within the framework of measures promoted by Beijing to stimulate consumption through greater fiscal spending. So it The country’s Ministry of Finance reported this Tuesday. Asian.
The country will “appropriately” increase the basic pension for retirees and urban and rural residents, and raise financial subsidy standards for residents’ health insurance to “vigorously boost consumption” next year, the ministry said. at the end of the National Financial Work Conference, held from December 23 to 24 in Beijing.
Likewise, China will support trade in consumer goods and will “effectively” promote greater social investment through government spending, according to the Finance Ministry, which has stressed that these measures will improve the living conditions of the population.
This meeting took place almost two weeks after the holding of the Central Economic Work Conference, in which Beijing announced that it will raise the fiscal deficit ratio in 2025 and will increase the issuance of bonds to boost national demand, especially that of households.
The Politburo, the second echelon of command of the Communist Party (CCP), had already announced at the beginning of the month that it will opt for a “moderately flexible” monetary policy in 2025, which represents the first change of position after 14 years defining it as “prudent.” “.
Low national and international demand, together with risks of deflation, insufficient stimuli, a real estate crisis that has not bottomed out or a lack of confidence among consumers and the private sector are some of the factors that currently cause most concern in the second largest world economy.
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