Stimulus Policies Boost China’s Economic Outlook

Visitors watch the sunrise scenery at the Dongji Square in Fuyuan, northeast China’s Heilongjiang province. Booming travel and holiday consumption mirror vitality of Chinese economy. (PHOTO: XINHUA)

ST DAILY | Published November 13, 2024

China’s gross domestic product (GDP) grew 4.8 percent year-on-year in the first three quarters of 2024, reaching around 94.97 trillion RMB (about 13.33 trillion USD), data from the National Bureau of Statistics (NBS) showed on October 18.

Given that, the full year GDP growth target of around five percent is now within reach with extra stimulus in the fourth quarter of 2024, Xu Tianchen, senior economist at The Economist Intelligence Unit, told CNBC.

Despite a complicated external environment and emerging challenges at home, the Chinese economy has posted generally stable performances.

The Associated Press reported, citing the NBS’s statement, that the Chinese economy has been “generally stable with steady progress” even in the face of a “complicated and severe external environment” and complicated domestic economic development.

China has recently ramped up policy stimulus with a slate of support measures aimed at boosting the economy, including reducing mortgage rates for existing homes and allowing banks to lend more.

 

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SOURCE: www.stdaily.com

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RELATED: China Faces Economic Challenges Amid Global Turmoil

Published November 13, 2024

China’s pursuit of economic growth has long stood as both an impressive achievement and a significant challenge, especially as it navigates the turbulent waters of global trade. Once celebrated as the world’s factory floor, China now grapples with the consequences of its rapid expansion and the hurdles of shifting toward sustainable domestic consumption. Recent developments reveal the complex web of challenges facing the Chinese economy and its increasingly pivotal role on the global stage.Economic indicators paint a mixed picture. On one hand, China’s GDP is expected to be around $19.35 trillion nominally by 2024, indicating substantial growth potential. The Chinese export market remains strong, boasting increases of 12.7% year-on-year for July, yet this momentum falters under the pressures of international tariffs and trade policies, especially from the United States.Chinese President Xi Jinping has centered his economic strategy around bolstering domestic consumption—a significant departure from the export-led growth model the country flourished under for years. This transformation is not without its complications; the transition demands fostering a wealthier middle class ready to embrace consumerism, which is easier said than done in the shadow of mounting debt, economic inequality, and political instability.

 

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SOURCE: www.evrimagaci.org

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