China’s economy showed supply-side resilience in the first half of the year, but the demand side remains fragile, Zhu Feng, China chief economist and head of Greater China Economic Research at JPMorgan, told China Perspective.
Zhu said stronger policy support would be crucial in the second half, with faster fiscal execution, quicker use of local government special bonds and accelerated project implementation.
He said infrastructure investments with clear links to demand, including urban renewal, affordable housing-related infrastructure, logistics, power grids, water conservancy, digital infrastructure and public services, may become a “strong focus for policy”.
Consumption subsidies, employment support and social welfare also need to be strengthened, with the full-year GDP growth target of 4.5 to 5 percent still within reach, Zhu added.
Huang Qi contributed to this story.
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