China will promote stable growth in household income in 2025 by stepping up direct fiscal support to consumers and boosting social security, the state-run Xinhua news agency said on Monday.
China has set expanding domestic demand as a top task to spur growth next year, as significant pockets of weakness in the crisis-hit property sector continue to forestall a full-blown revival.
To boost consumption, China will "greatly increase" funds from ultra-long special bonds to support the industrial upgrades and consumer goods trade-in scheme next year, Xinhua said, quoting an official of the Central Financial and Economic Affairs Commission.
Steps will focus on boosting household income through greater fiscal spending on consumption, better social security, job creation, wage growth mechanisms, higher pensions for retirees, better medical insurance subsidies, and policies to spur childbirth, Xinhua said.
Policymakers are weighing inclusion of more products in high demand and with potential for replacement in the scheme, as this programme had a "very good" effect this year, it added, without stating the size of 2025 funding and products to be included.
This year, 150 billion yuan ($20.60 billion) from such bonds was allocated to support consumer goods, including fridges and TVs trade-ins, with overall sales revenue driven by the scheme topping 1 trillion yuan so far.
"From the current economic operation, we expect annual economic growth at around 5%," the unidentified official told Xinhua.
Expecting the housing market to stabilise further, the official called for policy measures with direct impact on stabilising the real estate market to be adopted as soon as possible, with local governments getting greater autonomy to buy housing stock.
On Monday, official data showed home prices fell at the slowest pace in 17 months in November, thanks to government efforts to revive the sector.
"As an important part of domestic demand, there is still a huge room for China's investment," Xinhua said, adding that the country would improve investment efficiency and better target investment.
($1=7.2816 Chinese yuan renminbi)
