Chinese President Xi Jinping. File | Photo Credit: AP
President Xi Jinping addressed the country’s top political advisory body on New Year’s Eve, saying China needs to introduce “more aggressive” macroeconomic policies next year, state media reported.
Also read | China’s economy grew by 4.6% in the July-September period, falling short of the target of 5%
The country has struggled to emerge from recession this year due to a real estate crisis, slumping consumption and soaring government debt.
In recent months, the Chinese government has announced a series of aggressive measures aimed at boosting growth, including lowering interest rates, lifting restrictions on home purchases and easing the debt burden on local governments.
Also read | China’s economy lacks momentum as retail sales slump in November
But economists warn that more direct fiscal stimulus aimed at boosting domestic consumption is needed to restore full health to China’s economy.
State broadcaster CCTV reported that President Xi told the People’s Committee of China, “We… will deepen reform more comprehensively, expand high-level opening-up, better coordinate development and security, and take a more proactive approach.” “We must also implement effective macroeconomic policies.” Political advisory meeting at New Year’s tea party.
The Chinese government is aiming for an official national growth rate of around 5% this year, and while officials have expressed confidence in achieving the target, many economists believe it is within reach.
President Xi reiterated on Tuesday that “new high-quality productivity is steadily developing, and annual GDP is expected to grow by about 5%.”
The International Monetary Fund expects China’s economy to grow 4.8% this year and 4.5% next year.
issued – December 31, 2024 12:24 PM IST
