President Xi Jinping said China must put “more proactive” macroeconomic policies in place next year, State media reported, as he addressed a top political advisory body on New Year’s Eve.
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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 homebuying and easing the debt burden on local governments.
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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.
Beijing is aiming for an official national growth target this year of about 5%, 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 five percent,” Xi reiterated on Tuesday.
The International Monetary Fund expects China’s economy to grow by 4.8% this year and 4.5% next year.
Published – December 31, 2024 12:24 pm IST
