Boosting consumption essential

Customers pay with vouchers at a Carrefour supermarket in Wuhan, capital of Hubei province, on April 20. Apart from offering vouchers, cash grants, govts should also stabilize job market Experts have advised the government to take proactive measures to boost consumption and stabilize employment as pent-up demand restrained by the novel coronavirus epidemic may not be sufficient without massive stimulus. If we do not take strong measures to boost consumption, the phenomenon of inadequate consumption and excessive savings may continue," said Gan Li, director of the Survey and Research Center for China Household Finance at Southwestern University of Finance and Economics. Apart from issuing vouchers and offering cash grants, the government should also stabilize the job market for low-income earners, expand coverage of unemployment benefits and encourage the development of small-scale consumer loans by giving full play to internet companies and online banks, Gan said. Similar pressure was identified in low-income families, especially those whose annual income before tax was no more than 50,000 yuan, as their employment stability declined, according to the survey jointly released by the center and Ant Financial Research Institute on April 21.