BEIJING: After a key conference of Chinese leaders to decide priorities for next year’s economic work, senior officials voiced confidence that the country will accomplish major economic and social development goals this year and promote a sustained economic recovery in 2025. The annual Central Economic Work Conference was held in Beijing on Wednesday and Thursday.
Zhao Chenxin, deputy head of the National Development and Reform Commission, called 2024 an extraordinary year with encouraging achievements when speaking at a forum on Saturday.
In particular, the economy has seen positive changes since September, with notable improvements in expectations and better performances of major economic indicators, he said at the forum hosted by the China Center for International Economic Exchanges (CCIEE).
Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, predicted that the Chinese economy will expand by around 5 percent this year, contributing nearly 30 percent to global economic growth.
Han said employment and prices have remained stable, international payments have been basically balanced, and the foreign exchange reserves have remained above $3.2 trillion.
Despite these positive indicators, the economy still faces difficulties, and in response, policymakers outlined a series of measures to tackle challenges at the conference.
Zhao cited a more complicated and grim external environment, insufficient domestic demand, operational difficulties in some enterprises, and pressures on employment and income growth.
“Efforts should be made next year to implement more proactive and impactful macro policies, expand domestic demand, promote the integrated development of scientific and technological innovation and industrial innovation, stabilize the real estate and stock markets, prevent and resolve risks in key areas, and external shocks, stabilize expectations, and stimulate vitality,” he said.
According to the conference, China will adopt a more proactive fiscal policy and a moderately loose monetary policy in 2025.
Han said there was a shift in policy language this time, which means stronger counter-cyclical adjustments to cope with instability and uncertainty and more robust policy support for achieving annual targets.
To ensure a continuously forceful and more impactful fiscal policy, China will set a higher deficit-to-GDP ratio, strengthen the intensity of fiscal spending, increase the issuance of ultra-long special treasury bonds and local government special bonds, and optimize the structure of fiscal expenditure, said Wang Yiming, vice chairman of the CCIEE.
Wang Xin, head of the Research Bureau of the People’s Bank of China, said the country would reduce the reserve requirement ratio (RRR) and interest rates at an appropriate time, with enhanced credit flows to strategic areas, key sectors, and weak links of the economy. –The Daily Mail-CGTN news exchange item
