China expects to hit its economic targets of 5% growth
China expects its annual growth to hit its target of around 5%, says a senior Chinese official.The world’s second-largest economy is set to achieve major goals and contribute to nearly 30% of global growth, according to Han Wenxiu, deputy director of the Central Financial and Economic Affairs Commission’s general office. He told an economic forum in Beijing, hinting China’s economic growth will be about 5% this year, hitting its annual target.
Describing employment and prices as stable, Han said China’s foreign exchange reserves – the world’s largest – were expected to remain above US$3.2 trillion, according to state broadcaster CCTV.
Earlier this year the country’s annual growth target was set at “around 5 per cent” and policymakers have unveiled a series of stimulus measures in recent months in an effort to hit the target and revive growth.
It is the first comment about China’s economic prospects from a top official following the two-day central economic work conference last month, when planners looked back at 2024 and mapped out strategies for the New Year.
Economic planners pledged to seek a sustainable growth rate through a number of policy changes, including a higher fiscal deficit ceiling, more treasury bonds and cuts to interest rates and the reserve requirement ratio.
The new policy proposals “carry significant weight”, and specific plans would be unveiled during the annual legislative session in March, Han said.
He noted “a major shift” from previous years, including a more active fiscal policy and a shift from the “prudent” monetary policy that had been in place since 2009 to a “moderately loose” one.
The national financial work conference saw officials pledging to follow the new monetary policy with the aim of expanding domestic demand and transforming the economy.
Han also said that although growth had been weak in the second and third quarters, there had been positive developments in recent months, including in the real estate market.
Since October, both transaction volumes and prices have shown encouraging signals. Additionally, local government debt and risks from small and medium-sized financial institutions were being effectively alleviated and managed, he said.
This progress is attributed to a series of stimulus measures introduced since late September, which Han said had “successfully boosted social confidence and led to a clear economic rebound”.
He also stressed that China needed to focus on boosting domestic demand, especially consumption, as this should be its primary growth driver in the future amid rising external uncertainty.
Source: South China Morning Post