GDP Growth To ‘Top Development Agenda’ This Year

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China is likely to place more emphasis on economic growth in its development agenda for the next year and beyond; the country is also expected to introduce a fresh macroeconomic policy mix to revive business and boost consumption in the upcoming months, economists said on Wednesday, reports China Daily.

They shared their observations at a forum hosted by the Academic Center for Chinese Economic Practice and Thinking, which is part of Tsinghua University, on Wednesday afternoon. The forum unveiled a report that mapped out China’s growth potential and advantages that could emerge between 2023 and 2027.

China’s annual GDP growth rate

The report said that to achieve the goal of substantially growing the per-capita GDP to be on a par with that of a mid-level developed country by 2035, it is important to fully recognize and leverage the long-term potential of China’s economy. Efforts should be made to boost consumption, revive the private sector and optimize policies to help the troubled real estate sector to recover sooner than later.

Li Daokui, head of the think tank at Tsinghua University, said China’s annual GDP growth rate has been trending downward between the years 2009 and 2019. Reversing such a trend is critically important for injecting confidence into various markets, so as to realize the country’s 2035 goal. Macroeconomic policy adjustment has thus become imperative.

The report stated that despite notable challenges, several features in China’s economic fundamentals like the high savings rate hold potential for long-term growth. In addition, the fast-growing digital economy has been giving China a competitive edge and accelerating the industrial upgrade in recent years.

The Central Economic Work Conference in mid-December said that China will step up policy adjustments and strengthen policy coordination to support the economy in 2023. Fiscal policy will be stepped up and made more efficient, while monetary policy will be precise and forceful.

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Source: China Daily