China’s Economy Achieves Remarkable Results in 2023
In 2023, China’s economy achieved remarkable new results amid a complex domestic and international situation. The country’s economy saw an increase in macro-policy control, leading to successful economic advancements. The impressive growth in the economy was attributed to the increase in RMB loans to the real economy by more than 22 trillion yuan and the implementation of new tax cuts, fee reductions, and tax rebates exceeding 2.2 trillion yuan. These measures provided strong protection for people’s livelihood investments.
Key Role of Active Fiscal Policies and Prudent Monetary Policies
Active fiscal policies played a significant role in supporting enterprises and the people, providing a “combination punch” to boost economic development. The fiscal policies, including tax cuts and fee reductions, have enabled companies to make substantial investments in advanced equipment and production lines, leading to increased efficiency and improved product accuracy. This, in turn, has boosted market confidence and driven sales growth for various businesses.
Moreover, the government’s focus on improving people’s livelihood and increasing their sense of gain has been pivotal. It has allocated funds for infrastructure and energy-saving renovations, resulting in enhanced living environments and reduced energy costs for residents.
Monetary policy has also played a critical role in supporting the real economy, with a precise and powerful approach leading to a reasonably abundant liquidity situation. The implementation of prudent monetary policies has contributed to the rapid growth of RMB loans to the real economy, accompanied by a decline in comprehensive financing costs, which has benefited enterprises and promoted economic recovery.
Outlook for 2024
Looking ahead to 2024, the proactive fiscal policy will focus on increasing efforts to improve quality and efficiency to stimulate domestic demand and promote economic circulation. Additionally, policies will prioritize supporting technological innovation and manufacturing development.
In terms of monetary policy, the focus will shift from being “precise and powerful” to “precise and effective.” The goal is to maintain liquidity at a reasonable and sufficient level while strengthening support for credit funds and key areas of economic development to ensure sustainable and rapid growth.
The combined approach of active fiscal policies and prudent monetary policies is expected to promote stability and long-term development in China’s economy, laying the groundwork for continued progress in the years to come.