China's key economic work conference signaled strong confidence among senior officials about meeting major economic and social development goals this year. Held in Beijing, the annual Central Economic Work Conference brought together top leaders to set priorities for the upcoming year, emphasizing a sustained economic recovery projected for 2025.
Zhao Chenxin, deputy head of the National Development and Reform Commission, highlighted 2024 as an extraordinary year marked by encouraging achievements. Speaking at a forum hosted by the China Center for International Economic Exchanges (CCIEE), Zhao noted significant improvements in economic expectations and performance indicators since September.
Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, forecasted that China’s economy would grow by around 5 percent in 2024, contributing nearly 30 percent to global economic growth. Han also pointed out the stability in employment and prices, balanced international payments, and robust foreign exchange reserves exceeding $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. To address these issues, policymakers outlined a series of measures aimed at implementing proactive macro policies, expanding domestic demand, promoting technological and industrial innovation, stabilizing the real estate and stock markets, and mitigating risks in key areas.
The conference announced a shift towards more proactive fiscal and moderately loose monetary policies in 2025. Wang Yiming, vice chairman of the CCIEE, explained that this would involve higher deficit-to-GDP ratios, increased fiscal spending, and the issuance of ultra-long special treasury bonds and local government special bonds.
Wang Xin, head of the Research Bureau of the People's Bank of China, stated that the country would reduce the reserve requirement ratio (RRR) and interest rates at appropriate times to enhance credit flows to strategic areas and support stable economic growth.
In terms of consumption, Vice Commerce Minister Sheng Qiuping announced special campaigns to stimulate consumption, including consumer goods trade-ins and fostering new consumption models such as ice and snow consumption, the debut economy, and the sales of new energy vehicles and intelligent home appliances.
The conference also focused on stabilizing the real estate market. Dong Jianguo, vice minister of housing and urban-rural development, reported the delivery of 3.24 million new homes as of November under a nationwide government program. Efforts will continue to improve housing conditions, control the supply of new real estate land, and transition to high-quality, green, and intelligent homes.
Overall, China's Central Economic Work Conference outlined a comprehensive roadmap to navigate economic challenges and sustain growth, reinforcing the country's role as a key driver in the global economy.
Reference(s):
Senior officials' insights about China's key economic work conference
cgtn.com
