China's economy faces more opportunities than challenges in 2024 as economic growth remains on a recovery path and other factors contribute to high-quality growth, an official from the General Office of the Central Financial and Economic Affairs Commission said when discussing the just-concluded Central Commission Economic Work Conference .
The official said the country's key economic targets for 2023 are expected to be achieved. The country's economic development will reach new levels, with some institutions and economists forecasting economic growth of 5.2 percent or more and a total GDP of over 126 trillion yuan (US$17.7 trillion). China will remain the biggest engine of global growth, contributing to around a third of global economic growth, Xinhua news agency reported.
Consumer prices would remain stable and fundamental equilibrium in the balance of payments would be maintained while high-quality growth would be steadily promoted, the official said.
In 2024, China's economic growth will face more opportunities than challenges and more favorable conditions. The international landscape is full of challenges, geopolitical disputes and military conflicts. Global economic growth still lacks momentum and some financial institutions forecast that the global economy and international trade will not return to pre-COVID-19 levels in 2024, the official said.
Domestically, there are “bottlenecks in domestic economic flow” and challenges include a lack of effective demand, overcapacity in some industries, weak public expectations and the hidden risks, the official said.
China has the largest colossal market growth potential in the world. Along with the gradual improvement in societal expectations, high savings will be reflected in consumption and investment, the official said.
Meanwhile, macroeconomic policies will continue to support the recovery. The issuance of additional one trillion yuan ($139 billion) in special government bonds, interest rate cuts and reductions in the reserve requirement ratio, as well as tax and fee cuts would also have a positive impact in 2024, the official said, noting that further support measures are needed the economy will be announced next year.
There are enough policy tools available as low consumer prices and central government debt provide scope to accelerate monetary and fiscal stimulus, the official said.
He added that a comprehensive deepening of reform and opening-up will provide strong impetus to the economy, and a new round of structural reforms and industrial upgrading will create new development opportunities.
The official said authorities will strengthen demand management in 2024, calling for further efforts to coordinate domestic demand and improve supply to make full use of China's market advantages.
In addition, the official pledged efforts to boost private sector development, including by improving the legal system and introducing further market entry reforms to protect the interests and rights of private companies.
The official said further measures will be taken to actively mitigate risks in the real estate sector, accelerate the formulation of new growth models and promote the construction of affordable housing for the public.
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