China vows bigger fiscal spending to boost consumption next year [Fortune]
Jones Lang LaSalle Incorporated (JLL)
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Source: Fortune
Top officials led by President Xi Jinping vowed to raise the fiscal deficit target next year in an announcement made following a two-day huddle of the Central Economic Work Conference in Beijing, according to the state-run Xinhua News Agency. For only the second time in at least a decade, they made “lifting consumption vigorously” and stimulating overall domestic demand their top priority. Chinese officials also vowed to strengthen the social safety net with broad promises to bolster health care and pensions. Those initiatives have long been advocated by economists as the population ages, and households squirrel away savings to cover fees in case of a medical emergency. While the tone of the meeting was very supportive of growth, it lacked concrete details on policies, said Larry Hu, head of China economics at Macquarie Group Ltd. “I don't think the government will hand out money to consumers directly,” he added. “It's more likely the government will be spending more. China wil
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