The Chinese government urged local authorities to provide more financial aid to needy people or increase one-off allowances ahead of next month’s major holiday, as China’s economic woes are set to deepen through 2025.
China’s economy has struggled to gather steam this year, mainly due to a prolonged property crisis and weak domestic demand. Finding employment, especially for new college graduates, is also a policy priority, officials say.
On New Year’s Day and before the Lunar New Year at the end of January, local governments with financial capacity are encouraged to distribute relief funds or to meet the need, the Ministry of Civil Affairs said in a statement published on Saturday. Increase the one-time allowances to the sick.
The ministry issued a similar call at the end of September ahead of a major holiday for one-way assistance to the extremely poor, orphans and the distressed.
Support for certain groups, such as unemployed people who have not been paid unemployment insurance and who have no source of income, should be strengthened, according to the ministry’s weekend statement. Unemployed college graduates, sick people and families facing financial difficulties should also get help, she added.
China’s unemployment insurance system paid out 160.07 billion yuan ($21.93 billion) from January to November, up 25.5 percent year-on-year, according to official data.
The ministry also urged local governments to better monitor low-income groups.
The pace of China’s poverty reduction slowed in 2024 and is expected to slow further in 2025 and 2026, largely due to expected economic growth in the coming years, the World Bank said in a report last Thursday. Speed is low.
Analysts say buoyant domestic consumption, a key drag on the economy, is key to reviving growth next year. Policymakers have vowed to revive domestic demand.