China Politburo Calls for Proactive Fiscal Support as GDP Growth Slows to 4.3%
Updated
Updated · China Daily · Aug 2
China Politburo Calls for Proactive Fiscal Support as GDP Growth Slows to 4.3%
3 articles · Updated · China Daily · Aug 2
Summary
Thursday's Politburo meeting said China should speed the shift to new growth drivers and roll out more proactive fiscal and appropriately accommodative monetary policy, with timely incremental measures if needed.
The push follows weaker data: second-quarter GDP growth slowed to 4.3%, July's official manufacturing PMI fell to 49.2, and economists said domestic demand, real estate and private investment remain soft.
The PBOC on Saturday pledged to use policy tools comprehensively to keep liquidity ample, while analysts said Beijing could add treasury bond issuance and cut reserve requirements or interest rates as inflation pressure eases.
New industries are partly cushioning the slowdown—high-end manufacturing, the digital economy and modern services contributed more than 40% of first-half growth, and computing-network investment could reach 4 trillion yuan in 2026-30.
Goldman Sachs still sees 2026 growth at 4.6%, within China's 4.5%-5% target range, reflecting expectations that policy support, exports and technology gains can offset weak consumption.