China pledges to stimulate domestic demand and enhance economic recovery by 2024
Chinese state media reported on Friday that the Politburo, the top decision-making body of the Communist Party of China, has pledged to stimulate domestic demand and consolidate and enhance economic recovery by 2024. The announcement comes as the Chinese government continues to grapple with a weak economic recovery following the COVID-19 pandemic and other challenges.
According to a report by Reuters, Chinese leaders have promised to implement measures to revive the economy in 2024. In recent months, the Chinese government has rolled out a series of policy measures to support the economy, which has been hampered by the real estate crisis, local government debt risks, slow global growth, and geopolitical tensions.
Ratings agency Moody’s warned of a possible downgrade of China’s credit rating, citing the cost of bailing out debt-laden local governments and state-owned enterprises, as well as the challenges of controlling the real estate crisis. Analysts believe that the Chinese government will need to introduce more stimulus measures to support the economy amid these challenges.
The official Xinhua News Agency reported that China will continue to implement a moderately strengthened proactive fiscal policy and a prudent monetary policy. The country also aims to enhance the coherence of macroeconomic policies to improve economic vitality, prevent and resolve risks, and consolidate and enhance the momentum of economic recovery.
President Xi Jinping, who chaired the meeting, emphasized the critical stage of China’s economic recovery and the need for continued efforts to improve economic quality and achieve reasonable growth. Despite challenges, most analysts expect China’s economic growth to reach the government’s target of around 5% this year, although economic activity remains uneven compared to 2022 due to the impact of the COVID-19 pandemic.
The Politburo Economic Work Conference is typically a prelude to the annual Central Economic Work Conference, which is expected to be held around mid-December. The Chinese government’s efforts to support the economic recovery will continue to be closely watched as the country aims to navigate through the challenges facing its economy.