BEIJING (Reuters) – China’s government has urged local officials to provide more financial relief or increase one-off benefits to needy people ahead of next month’s major holidays, as China’s economic woes are set to extend into 2025.
China’s economy has struggled to accelerate this year, largely due to a lingering housing crisis and weak domestic demand. Securing employment, especially for those fresh out of college, is also a policy priority, authorities say.
Ahead of the New Year and the Lunar New Year at the end of January, local governments with financial means are encouraged to distribute aid or increase one-time benefits to the needy, according to a statement from the Ministry of Civil Affairs issued on Saturday.
The Ministry announced a similar call at the end of September on the eve of the major holidays for one-time assistance to the extremely poor, orphans and those in difficulty.
As stated in the ministry’s press release for the weekend, it is necessary to increase assistance to certain groups, such as the unemployed who have not paid unemployment insurance and those without a source of income.
Unemployed graduates, the sick and families facing financial difficulties should also get help, it added.
China’s unemployment insurance system paid out 160.07 billion yuan ($21.93 billion) from January to November, up 25.5% from last year, according to official data.
The ministry also called on local authorities to better monitor low-income groups.
The World Bank said in a report last Thursday that the pace of poverty reduction in China slowed in 2024 and is expected to slow further in 2025 and 2026, largely due to slower economic growth projected in the coming years.
Tepid household consumption, the main drag on the economy, is the key to a recovery in growth next year, analysts say. Policy makers have promised to revive household demand.
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