BEIJING: President Xi Jinping said China will put in place “more proactive” macroeconomic policies next year, state media reported, as he addressed a top political advisory body on Tuesday (Dec 31).
The country has struggled this year to climb out of a slump fuelled by a property market crisis, weak consumption and soaring government debt.
Beijing has unveiled a string of aggressive measures in recent months aimed at bolstering growth, including cutting interest rates, cancelling restrictions on home buying and easing the debt burden on local governments.
But economists have warned that more direct fiscal stimulus aimed at shoring up domestic consumption is needed to restore full health in China’s economy.
“We must … further comprehensively deepen reform, expand high-level opening up, better coordinate development and security, (and) implement more proactive and effective macroeconomic policies,” state broadcaster CCTV quoted Xi as telling the National Committee of the Chinese People’s Political Consultative Conference at a New Year’s tea party.
Later, in a televised speech addressed to the nation, Xi admitted there were still roadblocks ahead.
“The current economic operation faces some new situations, challenges from the uncertainty of the external environment, and pressure of transformation from old drivers of growth into new ones, but these can be overcome through hard work,” he said.
Beijing is aiming for growth of around 5 per cent this year, a goal officials have expressed confidence in achieving but which many economists believe it will narrowly miss.
“The new quality productivity develops steadily, and annual GDP is expected to grow by about 5 per cent,” Xi reiterated on Tuesday to the National Committee.
The International Monetary Fund expects China’s economy to grow by 4.8 per cent this year and 4.5 per cent next year.
Source: CNA
