Increasing Incomes Key to Boosting Domestic Demand, Professor Says

China is in dire need of more domestic consumption as global uncertainties hamper external demand. Key to this is increasing incomes and creating more places for consumers to spend money, a Chinese economics professor said at the Summer Davos Forum in Tianjin on Thursday.

Lu Ming, director of Shanghai Institute for National Economy at Shanghai Jiao Tong University, said that an effective way to increase personal incomes in the short term is to create more jobs and accelerate economic growth, which can be achieved through more proactive fiscal and monetary policies. And to boost household incomes, the government should roll out more policies aimed at easing burdens on major expenditures like education and housing.