China's Communist Party says the country's economy is facing "new difficulties and challenges" and has pledged to take steps to expand domestic demand.

Communist Party Politburo members discussed economic policies for the second half of 2023 in a meeting chaired by President Xi Jinping on Monday.

The state-run Xinhua News Agency quoted the Politburo as saying the economy is facing new difficulties and challenges due to such factors as insufficient domestic demand and some struggling enterprises.

The officials pledged to rev up consumer spending by boosting residents' income. They said they will try to shore up consumption of automobiles, electronic products and household items, as well as to promote spending in tourism and other service sectors.

The sluggish real estate industry was on the agenda as well. The attendees said China should adjust and optimize policies in a timely manner to ensure the stable and sound development of the property market.

The officials also made clear that the country is ready to take effective measures to curb the risks related to debt among local governments.

China's economic recovery following the end of its zero-COVID policy has lost steam. Its gross domestic product grew at a mere pace of 0.8 percent in the April-to-June period, compared to the previous quarter.