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Muscular fiscal policy needed to spur growth, expert says

By Chen Jia | chinadaily.com.cn | Updated: 2020-07-30 09:56
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Yu Yongding, senior fellow and academician at the Chinese Academy of Social Sciences (CASS), speaks at the Global Think Tank Webinar - "Stronger together: Global recovery from COVID-19" in Beijing on July 29, 2020. [Photo by Feng Yongbin/China Daily]

"Barring a resurgence of COVID-19, China's V-shaped economic recovery will continue, and the economy could post full-year GDP growth of 2.5 percent," said Yu, who estimated growth to continually accelerate to around 6 percent in 2021.

That means the economy has to grow at a rate of about 6 percent in the second half this year. It requires the government to sustain large spending and allow a rise of deficits, or it will be difficult to create as many jobs as planned, he said.

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