The Chinese economy would grow around 5% this year, the deputy director of the country’s Central Commission for Economic and Financial Affairs said on Saturday.
The second economy in the world would contribute to nearly 30% of global growth, said Han Wenxiu at an economic conference.
Han, who is also a senior official in the ruling Communist Party, He stated that it was necessary to boost consumption and consider the expansion of domestic demand as a strategic move in the long term that would become the main engine of economic growth.
China promised on Thursday to issue more debt and ease monetary policy to maintain a stable economic growth rate, preparing for more trade tensions with the United States with the return of Donald Trump to the White House.
Government advisers have recommended Beijing keep its growth target around 5% for next year, Reuters reported last month. But while the stock market anticipates a revival in sagging Chinese consumption, bond investors are betting that the economy will continue to struggle.
Han said more active fiscal policy and moderately loose monetary policy would help China. better respond to unstable and uncertain factors in the economy, and would provide strong support to achieve annual targets.
China’s foreign exchange reserves likely to remain above $3.2 trillion this year, while employment and prices are expected to remain stable, Han said.
