In a significant move, senior officials at the Central Economic Work Conference in Beijing expressed strong confidence in achieving major economic and social development goals this year. The conference, held over Wednesday and Thursday, set the stage for a sustained economic recovery by 2025.
Zhao Chenxin, deputy head of the National Development and Reform Commission, highlighted 2024 as an extraordinary year with impressive achievements. Speaking at a forum organized by the China Center for International Economic Exchanges (CCIEE), Zhao pointed out the positive economic changes since September, including improved expectations and stronger performances in key economic indicators.
Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, projected that the Chinese economy will grow by around 5% this year, contributing nearly 30% to global economic growth. Han emphasized the stability in employment and prices, balanced international payments, and maintained foreign exchange reserves above $3.2 trillion.
Despite these positive signs, challenges remain. Zhao identified a complex external environment, insufficient domestic demand, operational difficulties for some enterprises, and pressures on employment and income growth. In response, policymakers outlined a series of measures to address these issues, including:
Implementing proactive macro policies
Expanding domestic demand
Promoting integrated scientific and technological innovation
Stabilizing the real estate and stock markets
Preventing and resolving risks in key areas
The conference also revealed plans for a more proactive fiscal policy and a moderately loose monetary policy in 2025. Wang Yiming, vice chairman of the CCIEE, mentioned a higher deficit-to-GDP ratio, increased issuance of special treasury bonds, and optimized fiscal expenditure structures to support these initiatives.
Additionally, Wang Xin, head of the Research Bureau of the People's Bank of China, announced potential reductions in the reserve requirement ratio (RRR) and interest rates to enhance credit flows to strategic areas and key sectors. These monetary measures aim to promote stable economic growth, employment, and reasonable price rebounds.
Vice Commerce Minister Sheng Qiuping shared plans to stimulate consumption through special campaigns and practical measures, such as promoting consumer goods trade-ins and fostering new consumption models like ice and snow consumption, the debut economy, and sales of new energy vehicles and intelligent home appliances.
In the real estate sector, Vice Minister Dong Jianguo emphasized efforts to stabilize the market by delivering new homes, advancing the renovation of shanty towns, and constructing high-quality, green, and intelligent residences to meet growing demands.
With these comprehensive strategies, China's leaders are set to navigate economic challenges and drive continued growth in the coming years. 🌟📈
