China’s State Council fans stimulus hopes with economic plan for faltering growth

State Council says it is considering various macroeconomic policies to boost demand and defuse risks

The effort may not be enough to overcome slow decision-making and negative sentiment, analyst says

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Premier Li Qiang and the State Council are considering a range of options to reinvigorate the economy. Photo: Xinhua

Published: 9:30pm, 17 Jun 2023Updated: 9:22am, 19 Jun 2023

China is mulling an economic package to support its waning post-pandemic recovery, with rising expectations that Beijing is preparing to go into stimulus mode.

At a meeting chaired by Premier Li Qiang on Friday, the State Council considered a batch of macroeconomic policies designed to expand “effective demand”, strengthen the real economy and defuse risks in key areas.

“In response to the changing economic landscape, it is imperative to introduce policies that are more powerful,” the council said in a statement released by state news agency Xinhua.

“Policies that meet the necessary conditions should be promptly unveiled and implemented without delay,” the report said without saying what the measures were or when details would be released.

We expect an imminent stimulus package to safeguard China’s recovery

Morgan Stanley economists

The meeting came a day after readings of headline indicators – such as industrial output, retail sales and property investment – generally fell short of market estimations, adding to signs that China’s economy stumbled last month.