[1/2]People pick up their children from school in Beijing, China, on April 6, 2021. Photographed on April 6, 2021.REUTERS/Thomas Peter/File Photo Obtaining license rights
HONG KONG, Dec 12 (Reuters) – China’s government’s Institute for Policy Studies has announced the most valuable investments for the Chinese economy to stimulate consumption and boost domestic demand, as the country recorded its first population decline in more than 60 years last year. said they were children.
The world’s second-largest economy is struggling to make a strong recovery after the pandemic, and future declines in labor and consumer demand could have a significant impact on the economy.
“Children are the best investment in the current Chinese economy. Infrastructure investment is reaching saturation and manufacturing has overcapacity…But investing in the number of children alone is not enough.” says a policy paper released by the Yuwa Population Research Institute on Tuesday. .
The paper called on authorities to “urgently” reverse the rapid decline in the number of newborns.
The report states that while China’s advantage will shrink in the future as its young population rapidly declines, economic measures such as lower interest rates, revitalizing capital markets, and optimizing real estate regulations will promote economic growth. He expressed the view that the recovery remains weak.
To boost the economy, the Yuwa report calls for childbirth subsidies to be distributed at the national level rather than local governments, and targeted measures to reduce the high costs of childbirth and childcare. recommended.
Local governments have announced a series of policies aimed at reducing childcare fees in recent years, and many are being implemented.
Policies are either not implemented or remain on paper due to a lack of funding and motivation from local governments, the report said.
“Currently, people are reluctant to get married and have children.The average Chinese pregnancy Motivation is almost the lowest in the world.”
Current subsidies remain inadequate and lower than in most European countries, the report said.
China reported a decline of about 850,000 people from its 2022 population of 1,411.75 million, the first decline since 1961, the last year of China’s Great Famine.
Reporting by Farrar Master and Beijing Newsroom.Editing: Michael Perry
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