China's Leaders Pledge to Spur Domestic Demand, Economic Recovery

FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo
FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo
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China's Leaders Pledge to Spur Domestic Demand, Economic Recovery

FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo
FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo

China will spur domestic demand and consolidate and enhance the economic recovery in 2024, the Politburo, a top decision-making body of the ruling Communist Party, was quoted by state media as saying on Friday.
The government has in recent months unveiled a flurry of measures to shore up a feeble post-pandemic economic recovery that has been held back by a property crisis, local government debt risks, slow global growth and geopolitical tensions.
Ratings agency Moody's slapped a downgrade warning on China's credit rating on Tuesday, saying costs to bail out debt-laden local governments and state firms and control its property crisis would weigh on the growth outlook of the world's second-largest economy.
According to Reuters, analysts believe the government will have to unveil more stimulus to support the economy, which still faces headwinds.
China will continue to implement a proactive fiscal policy, which will be moderately strengthened, and implement a prudent monetary policy, which will be "flexible, moderate, precise, and effective", state media quoted the Politburo as saying.
The meeting, which was chaired by President Xi Jinping, also said the country will enhance the consistency of macroeconomic policies, the official Xinhua news agency reported.
China will "effectively enhance economic vitality, prevent and resolve risks, improve social expectations, consolidate and enhance the positive trend of economic recovery, continue to promote the effective improvement of quality and reasonable growth of the economy," Xinhua said.
"Efforts should be made to expand domestic demand and form a virtuous cycle of mutually promoting consumption and investment. We need to deepen reforms in key areas and continuously inject strong impetus into high-quality development."
President Xi said in a meeting with non-Communist Party representatives held on Wednesday that the country's economic recovery is still at a critical stage, Xinhua said in a separate report on Friday.
Most analysts believe China's growth is on track to hit the government's target of around 5% this year, but that compares with a COVID-weakened 2022 and activity remains uneven. The Politburo's meeting on economic work is usually a prelude to the annual agenda-setting Central Economic Work Conference, which is expected to be held around mid-December.
China's government advisers will recommend a steady growth target for 2024 and more stimulus to the policymakers' meeting.
"There is no doubt fiscal policy will take a leading role in 2024," said Bruce Pang, chief economist at Jones Lang Lasalle.
Analysts at UBS expect China to set a fiscal deficit target of 3.5%-3.8% of gross domestic product, and a special local government bond quota of around 4 trillion yuan ($560 billion) for 2024, versus this year's 3.8 trillion yuan.
The government has launched a slew of policy measures in recent months to shore up a feeble post-pandemic economic recovery impacted by a property crisis, local government debt risks, slow global growth and geopolitical tensions.
The central bank has delivered modest interest rate cuts and pumped out more cash in recent months to support growth.
In October, China unveiled a plan to issue 1 trillion yuan in sovereign bonds by the end of the year, raising the 2023 budget deficit target to 3.8% of gross domestic product (GDP) from the original 3%.
The Politburo also studied plans for anti-corruption work and reviewed regulations on party disciplinary action, Xinhua said.



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."