Policies Keep The Economy Stable

By | 21 October 2021

Policies Keep The Economy Stable

Officials and experts said on Tuesday that despite increasing uncertainty, China is still expected to achieve its annual growth target. China will work hard to strengthen policies adjustments and strive to maintain industrial performance at a reasonable level.

Luo Junjie, spokesperson of the Ministry of Industry and Information Technology. Said at a press conference in Beijing that China’s industrial economy has shown a steady recovery in the first three quarters and has shown strong resilience in the face of the challenges brought about by the sporadic recovery of the new crown pneumonia epidemic. -19. Floods are flooding, and the situation at home and abroad is complex and changeable.

Luo cited the main industrial indicators in the first three quarters

As saying that China’s industrial economy has maintained a recovery trend, showing strong economic resilience and endogenous growth momentum.

Luo warned that due to the challenges brought about by the increase in uncertainty. Such as the impact of COVID-19 and the complex domestic situation, he said that there are signs of slowing down due to factors such as rising raw material prices, tight energy supplies, and long-term chip shortages.

“It is necessary to increase support for the healthy development of small and medium-sized enterprises. Maintain the stability of key industrial chains and supply chains, and ensure that the industrial economy operates within a reasonable range.” Luo said.

In the next step, Luo said that the country will vigorously promote policy adjustments, ease the difficulties of enterprises, and strive to achieve the annual growth target.

In the first three quarters, the added value of major industrial enterprises across the country increased by 11.8% year-on-year. Further, the average growth rate from January to September in 2020 and 2021 was 6.4%.

Among the 41 industries surveyed. 39 experienced year-on-year growth in value added in the first three quarters, and 21 achieved double-digit growth. From January to September, the added value of equipment manufacturing industry and high-tech manufacturing industry increased by 16.2% and 20.1% year-on-year respectively.

Tang Jianwei, chief researcher at the Bank of Communications Financial Research Center. Furthermore, Warned that weak domestic demand and slowdown in industrial production will increase downward pressure on the Chinese economy in the fourth quarter and next year.

“Macro policies need to be more proactive and better strengthen cross-cycle adjustments,” Tang added. “There is still a lot of room for a proactive fiscal policy. Policymakers should pay more attention to structural adjustments and increase support for key areas and weak links.”

Louis Kuijs, head of Asian economics at Oxford Economics, said the think tank expects a shift in economic policy in the fourth quarter to support the country’s growth. However, even if the pressure on the supply side eases. Furthermore, we expect GDP growth to slow significantly in the fourth quarter. Mainly due to weak real estate,” Kuijs said. “In response, we believe that policymakers will take more measures to boost economic growth. Including ensuring sufficient liquidity in the inter-bank market. Accelerating infrastructure construction, and relaxing certain aspects of overall credit and real estate policies.

GDP Growth of 9.8% In The First Three Quarters

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