BEIJING, CHINA – NOVEMBER 9: Chinese President Xi Jinping attends a meeting with Indonesian President Prabowo Subianto (not pictured) at the Great Hall of the People on November 9, 2024 in Beijing, China.
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China confirmed recent policy shifts and stressed plans to boost growth at a high-level economic planning meeting that concluded Thursday, according to state media.
The annual economic work conference followed a high-level meeting on Monday of the Politburo, the top decision-making body of the ruling Communist Party led by President Xi Jinping.
Politburo pledge To implement “more proactive” financial instruments and “moderately looser” monetary policies in 2025, while intensifying “unconventional countercyclical adjustments” to boost domestic consumption “on all fronts,” according to the IMF. Read state-owned Xinhua News Agency.
Employ language that has not been used since The depth of the global financial crisis In 2008, Beijing indicated an urgent need to support its faltering economy and prepare for a possible trade war with the United States, with Donald Trump returning to the White House.
Chinese officials have intensified stimulus measures since late September, including implementing several interest rate cuts, easing requirements for property purchases, supporting liquidity for stock markets and stimulating the economy. Stimulus worth 10 trillion yuan ($1.4 trillion). A package to alleviate local governments' debt problems.
However, recent economic data indicated that these steps have not proven enough to offset ongoing deflationary pressure in the economy, raising investors' hopes that Beijing will increase stimulus measures to restore growth.
Consumer price inflation in the country fell to Lowest level in five months in NovemberWhile deflation in wholesale prices remains, with the Producer Price Index declining for the twenty-sixth month in a row.
The Chinese authorities confirmed Beijing's intention to boost consumption throughout the year. Little has been put in place in terms of policies, otherwise A support program to stimulate trading Household appliances and used electronic goods.
While policy details and specific numbers will only be announced at the National People's Congress next March, Beijing is widely expected to do so. Maintain the GDP growth target for next year At “about 5%”.
Policymakers may also budget higher than usual Deficit target of 4% of GDP, some economists had predicted, which would allow the central government to borrow more to support the faltering economy.
This breaking news is updated.
