Facilitating a solid economic recovery with a focus on substantially expanding domestic demand and boosting market confidence will be key priorities for China next year, after a key meeting outlined major policy objectives and plans for the overall improvement of the world's second-largest economy.
The tone-setting Central Economic Work Conference, which concluded on Friday, sent a strong message that reviving the COVID-19-hit economy and bringing GDP growth back to a reasonable range will be a major task of the government, officials and economists said over the weekend.
Further optimization of pandemic containment measures and better policy coordination will support a strong economic rebound in the first half of next year, they added.
The country will see a notable economic rebound next year amid a sluggish global economy, while the resumption of life and production order will accelerate in the first half of 2023, said Han Wenxiu, an official with the Central Committee for Financial and Economic Affairs.
Some economists have upgraded their projections for China's growth next year and said it is possible for the country to achieve a substantial improvement in its GDP growth rate in 2023, given the strong policies to revive the economy, intensified policy support and a low comparison base this year.
While the economy will likely continue to face strong headwinds and disruptions caused by ongoing COVID-19 outbreaks, economic recovery is expected to accelerate in the second quarter of next year if the ongoing COVID-19 wave peaks in the first quarter.
While consumer sentiment and confidence may continue to remain cautious in the short term, Zhou Maohua, a macroeconomic analyst at China Everbright Bank, said the optimization of COVID-19 containment measures will give a strong boost to the recovery of domestic demand next year. He said he expected to see a gradual normalization of activities and accelerated resumption of work and production in business and services such as catering, tourism and retail.
Looking ahead to next year, China's macroeconomic policy will likely adopt a pro-growth stance by expanding fiscal spending and providing greater monetary support to the economy. Top policymakers have emphasized that proactive fiscal policy measures need to be reinforced to improve efficiency, and prudent monetary policy measures need to be precise and forceful.
Above article is from China Daily.
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