China’s economy is projected to grow by approximately 5% this year, according to Han Wenxiu, deputy director of the central financial and economic affairs commission, who spoke at an economic conference on Saturday.
As the world’s second-largest economy, China is expected to contribute nearly 30% to global growth, Han noted. He emphasized the importance of boosting consumption and prioritizing domestic demand expansion as a long-term strategy to drive economic growth.
In a move to stabilize its growth rate amid potential trade tensions with the U.S., China announced on Thursday plans to increase debt issuance and adopt a looser monetary policy. This comes as Donald Trump prepares to return to the White House.
Government advisers have reportedly suggested maintaining a growth target of around 5% for next year, according to a Reuters report from last month. While the stock market anticipates a recovery in China’s sluggish consumption, bond investors remain cautious, predicting continued economic challenges.
Han highlighted the role of a more proactive fiscal policy and a moderately loose monetary stance in addressing economic uncertainties and supporting the achievement of annual growth targets.
He also stated that China’s foreign exchange reserves are likely to remain above $3.2 trillion this year, with employment and prices expected to remain stable.
