BEIJING: China’s economy is expected to grow by about 5% this year, the deputy director of the country’s central financial and economic affairs commission said on Saturday.
The world’s second-largest economy is expected to contribute close to 30% of global growth, Han Wenxiu told an economic conference.
Han, who is also a senior official in the ruling Communist Party, said there was a need to boost consumption and view domestic demand expansion as a long-term strategic move that would become the main driving force for economic growth.
China pledged on Thursday to issue more debt and loosen monetary policy to maintain a stable economic growth rate, bracing for more trade tensions with the U.S. as Donald Trump returns to the White House.
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Government advisers have recommended that Beijing keep its growth target of around 5% for next year, Reuters reported last month. But while the stock market anticipates a revival in China’s flagging consumption, bond investors are betting the economy will continue to struggle.
Han said a more active fiscal policy and moderately loose monetary policy would help China respond better to unstable and uncertain factors in the economy, and provide strong support for achieving annual targets.
China’s foreign exchange reserves likely remained above $3.2 trillion this year while employment and prices are expected to remain stable, Han said.
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